The regulator found that
, a separate legal entity and a wholly-owned subsidiary of BSE Ltd, had acquired an 8 per cent stake in Indus Water Institute Ltd. The latter provides support to entrepreneurs in water and clean technologies.
In its order, Sebi said that such activities are not related to the activities as carried out by the exchange.
Under the rules, Sebi’s prior approval was required for the same.
For the violation of not seeking prior approval, the regulator has imposed a fine of Rs 3 lakh on the exchange.
In October 2020, Sebi imposed Rs 6 crore penalty on NSE for picking up stakes in six entities, including CAMS and Power
, without obtaining the regulator’s approval.
Apart from CAMS and Power Exchange India Ltd (PXIL), the exchange had acquired stakes in NSEIT Ltd, NSDL E-Governance Infrastructure Ltd (NSEIL), Market Simplified India Ltd (MSIL) and Receivables Exchange of India