Security and Exchange Board of India (SEBI) on Friday imposed a penalty of Rs 3 lakh on the Bombay Stock Exchange (BSE) for violation of the Stock Exchanges and Clearing Corporations (SECC) Regulation 2018.

This imposition of penalty is associated with the BSE’s acquisition of a stake in various subsidiaries, including BSE Technologies (BTPL), Marketplace EBIX Technology (METSPL), and BSE Tech Infra Services (BTISPL), BIL Reyson Futures and Indus Water Institute. Apparently, the exchange didn’t without taking necessary approvals from the SEBI.

SEBI, in this regard, also issued a show cause notice to the BSE in January. The regulatory authority conducted investigations to ascertain if BSE’s investments were unrelated or not incidental to its activity as a stock exchange.
Allegedly, BSE, through its completely-owned subsidiary BTPL, continued to carry out its activities without the approval of SEBI. Also, it had indirectly carried out unrelated/non-incidental activities through BTISPL and METSPL,