India's securities regulator, SEBI, has imposed a fine of ₹4 lakh on Pace Stock Broking Services for failing to maintain proper trade records.
The penalty stems from regulatory lapses identified during an investigation into alleged front-running by Axis Mutual Fund.
The sanction targets the broker's operational compliance rather than direct market manipulation, highlighting the regulator's focus on intermediary accountability.
SEBI's action follows a broader crackdown on market integrity, with the regulator recently barring 10 entities, including Ashok Jain, from trading in DIL Limited shares over fraudulent preferential allotment allegations.
This development adds to a tightening regulatory environment for Indian financial intermediaries.
SEBI has also operationalized a mechanism to freeze promoter shares during corporate buybacks, effective August 1, aimed at preventing promoters from selling stakes while companies repurchase shares.