Securities and Exchange Board of India (SEBI) today suspended the registration of Registrar to Issue and Share Transfer Agent (RTA) Satellite Corporate Services (SCS) for three months over the company's failure in carrying out its fiduciary responsibility towards the client.
"The Market Intermediaries Regulation and Supervision Department, Sebi, shall appoint an auditor... Before restoration of the notices (SCS) certificate of registration, and satisfy itself that SCS has fully complied with all relevant guidelines/circular to carry out its business in the best interest of the securities market," the regulator said.
It allowed the transfer of shares without making any attempts to verify the genuineness of those transfer requests or without even sending seller notices to the transferors.
Accordingly, SCS is liable for action under Sebi's Intermediaries Regulations, it said.
Source: Zeenews
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