SEBI imposes Rs 3 lakh fine on BSE

The market regulator Securities and Exchange Board of India (SEBI) has imposed a fine of Rs 3 lakh on BSE for engaging in activities unrelated to a stock exchange. 

“This is to inform that pursuant to Regulation 30 read with Schedule Ill of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we intimate that SEBI has passed an Order dated July 29, 2022 imposing a penalty of Rs. 3 lakhs on BSE Limited. The said Order is being reviewed and shall be dealt suitably as per advice of legal counsel,” exchange stated in a filing. 

The fine was imposed on Friday for indirectly engaging in activities unrelated to a stock exchange without SEBI’s approval. The order came after the SEBI examined investments of the BSE to ascertain whether it had engaged in such activities. 

BIL, a wholly-owned subsidiary of BSE, had acquired an 8 per cent stake in Indus Water Institute Ltd, that provides support to water and clean technologies firms. 

SEBI noted that such activities are not related to activities of an exchange, and hence, prior approval was required for the same. 

In a similar case in 2020, the SEBI imposed a fine of Rs 6 crore on NSE for picking stake in six entities without the regulator’s approval. 

(With PTI inputs)

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