Sebi Cancels Registrations of 68 Market Intermediaries for Non-Compliance
Capital markets regulator, the Securities and Exchange Board of India (Sebi), has taken a strict stance against non-compliance by cancelling the registrations of 39 stock brokers, seven commodity brokers, and 22 depository participants. This decision, announced on Friday, reflects Sebi’s commitment to upholding regulatory standards and ensuring the integrity of the financial markets.
Reason for Registration Cancellation
Sebi’s action to cancel the registrations of these market intermediaries is rooted in their failure to meet the necessary registration requirements. Specifically, the 39 stock brokers and seven commodity brokers had their registrations revoked due to their expulsion as members by recognised stock exchanges. According to Sebi’s orders, these entities no longer fulfill the conditions stipulated under the Broker Regulations, 1992, leading to the cancellation of their registrations.
Similarly, the 22 depository participants faced registration cancellations as a result of their agreements with depositories being terminated. Upon receiving this information from the depositories, Sebi determined that these entities no longer met the registration requirements outlined in the DP Regulations, 2018.
The primary objective behind cancelling these registrations is to prevent the potential misuse of Sebi registration by inactive intermediaries. By taking this measure, Sebi aims to safeguard investors from unknowingly engaging with entities that are no longer compliant with the regulatory framework.
Despite the cancellation of their registrations, Sebi has underscored that these entities remain accountable for any actions taken or omitted as stock brokers, commodity brokers, or depository participants. Additionally, they are responsible for settling any outstanding dues and interest owed to Sebi.
Next Steps and Compliance Measures
In its order, Sebi has mandated that all affected entities must adhere to certain requirements post-cancellation. These include maintaining and preserving records and documents as per relevant regulations, addressing investor grievances, transferring records, funds, or securities of clients, ensuring continuity of service to clients, and taking necessary actions regarding any defaults or pending actions.
Entities Affected by Sebi’s Cancellation:
List of Stock Brokers:
1. Bezel Stock Brokers Private Limited
2. Reflection Investments
3. Action Financial Services (India) Ltd
4. Sumpoorna Portfolio Limited
5. Vineet Securities Pvt Ltd
6. Quantum Global Securities Limited
7. Wellindia Securities Limited
8. Vrise Securities Private Limited
9. Credential Stock Brokers Ltd
10. Aanya Commodities Pvt Ltd
11. Amber Solutions Pvt Ltd
12. Arcadia Share & Stock Brokers Private Limited
13. C.M. Goenka Stock Brokers Pvt Ltd
14. Destiny Securities Ltd
15. Bhavesh Dhirajlal Stock Broking Co Ltd
16. Enrich Fin & Securities Ltd
17. First Futures and Stocks Private Limited
18. Ganga Yamuna Finvest Private Limited
19. Gems Equities & Securities Pvt Ltd
20. Indovision Securities Limited
21. Olympia Securities Limited (Investnet Securities India Ltd)
22. Century Consultants Ltd
23. Merfin (India) Ltd
24. Micro Forex Equity & Derivatives Private Limited
25. Moneyflo Securities Private Limited
26. Mousumi Deb Roy (Goodluck Securities)
27. Orient Capital Markets Pvt Ltd
28. Orion Capital and Debt Market
29. Parikh & Shah Finvest Pvt Ltd
30. Prem Somani Share Brokers Pvt Ltd
31. Prime Broking Company (I) Limited
32. Rusoday Securities Ltd
33. Saarc Net Limited
34. Star Share & Stock Brokers Ltd
35. Unicon Securities Pvt Ltd (Unickon Securities Pvt Ltd)
36. Wealth Mantra Limited
37. Yuvraj Securities
38. Classic Share & Stock Broking Services Ltd
39. Grovalue Securities Private Limited
List of Commodity Brokers:
1. Wealth Mantra Commodities Pvt Ltd
2. Sumpoorna Comtrade Private Limited
3. Chaitanya Commodities Private Limited
4. BVK Pulses Online Trading Company
5. Infonic India Financial Services Private Ltd
6. Financial Leaders Commodities
7. Wellindia Commodities Pvt Ltd
List of Depository Participants:
1. Moongipa Investments Limited
2. Aarya Equity (India) Private Limited
3. ASL Capital Holdings Private Limited
4. Atlanta Share Shopee Limited
5. Wealth Mantra Limited
6. Ideal Stock Broking Private Limited
7. PUG Securities Pvt Ltd
8. Grovalue Securities Private Limited
9. Arcadia Share and Stockbrokers Private Limited
10. Punjab and Maharashtra Co-Operative Bank Limited
11. Astitva Capital Market Private Limited
12. Amtiger Consultants Private Limited
13. First Futures and Stocks Private Limited
14. Tradenext Securities Limited
15. Click2trade Capital Limited
16. Vasanti Share Brokers Ltd
17. Max Planwealth Securities Ltd
18. Action Financial Services (India) Limited
19. Bright Shares and Stocks Private Limited
20. M G Capital Services Limited
21. Integrated Stock Broking Services Pvt Ltd
22. Rajanarayan Capital Markets Services Limited
Sebi’s decisive action to cancel the registrations of these market intermediaries underscores the regulator’s commitment to maintaining a transparent and compliant financial ecosystem. By holding these entities accountable for their non-compliance, Sebi sends a clear message about the importance of adhering to regulatory standards in the capital markets.