US market regulator Securities and Exchange Commission (SEC) has charged four Indian brokerages - Ambit Capital, Edelweiss, JM Financial and Motilal Oswal - for providing unauthorised broking services in the US, but agreed to settle the charges after a payment of more than $1.8 million (about Rs 10 crore).
The SEC said in a statement late last night that the four financial services firms were providing brokerage services to institutional investors in the US without being registered with the SEC as required under the federal securities laws.
"The four firms - Ambit Capital Private Limited, Edelweiss Financial Services Limited, JM Financial Institutional Securities Private Limited, and Motilal Oswal Securities Limited - agreed to pay more than $ 1.8 million combined to settle the SEC's charges," the regulator said.
Despite being unregistered broker-dealers, the four companies engaged the US investors here through sponsored conferences, regular travel of their employees to meet the US investors, traded securities of India-based issuers on behalf of US clients and participated in securities offerings from India-based
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