It was alleged that Religare Securities failed to exercise "due care, diligence and promptitude" while dealing for its client Pooja Menghani and was involved in front-running and manipulative activities.
The markets regulator noted that the charge against Religare was non-compliance of code of conduct requirements about observance of due diligence and maintaining high standards of integrity and the like.
"Religare has failed in its duty to exercise adequate care/caution and suitably advise/caution its employees about the practices to be followed in its business or adequately instruct its employees to render fair services to its clients and not to indulge in any kind of manipulative/fraudulent activities," Sebi said.
Warning Religare Securities, the regulator asked it "to be careful and cautious in the conduct of its stock broking activity and to adhere to and comply with all the statutory provisions while carrying out its activities in the securities market".
Vishvas Securities is a registered broker and a member of the National Stock Exchange (NSE).
The regulator found that Vishvas Securities indulged in synchronised, circular and self-trades to tamper with the free, fair and transparent price discovery system of the stock exchange, among other violations.
"Such practices where the transactions are put in with a pre-meditated understanding have potential to distort the price discovery process at the stock exchange and disturb the market equilibrium," Sebi said.
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