Discrepancies related to Anti-Money Laundering and Combating Financing of Terrorism (AML and CFT) regulations were observed against brokers and depository participants by two exchanges - BSE and NSE - as also depositories – CSDL and NSDL, as per market regulator Sebi's latest annual report.

A total of 380 members faced actions last fiscal for discrepancies related to AML/CFT rules as against 375 such entities in 2013-14.
Of the total market intermediaries, the BSE took action against 166 trading members, NSE dealt with 27 entities, while MSEI took steps against nine members after observing violations of anti-money laundering norms.
Besides, CDSL and NSDL took action against 169 and nine market members respectively for possible violations to anti-money laundering norms.
The actions taken by the exchanges and depositories were by way of warnings, advice and imposition of penalties. While warnings and advice were issued to a majority of the market entities, as many as 32 were slapped with penalties for violating AMT and CFT norms, while warnings and advice were issued to a majority.
Meanwhile, the Securities and Exchange Board of India (Sebi), had carried out 59 special purpose inspections against stock brokers to check their compliance with the AML/CFT and Know-Your-Client (KYC) norms, during 2014-15.


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