SEBI · Enforcement · Low
SEBI issues adjudication order against Eastern Financiers for AP supervision lapses
The stock broker failed to maintain pre-order trade confirmations for three of its authorized persons, violating SEBI regulations.
What changed
- SEBI's Adjudicating Officer issued an order against Eastern Financiers Ltd for supervision lapses.
- The broker could not provide call recordings for orders received via telephone or IBT from three APs.
- The order follows a joint SEBI-BSE inspection covering April 2024 to April 2025.
The read
SEBI's adjudication order against Eastern Financiers is a reminder that brokers are responsible for their authorized persons' recordkeeping. The broker could not produce call recordings for three APs who took orders by phone or internet—a clear violation of the requirement to maintain pre-order trade confirmations. While the order does not specify a penalty, it puts every broker on notice: SEBI and exchanges are inspecting AP networks, and lapses will be called out. Brokers should audit their audio recording systems now, before the inspectors arrive.
Eastern Financiers LimitedMs. Jonaki BiswasMr. Rohit Kumar JainMr. Hitesh P Sanghvi
Primary source: official circular (PDF)