The Securities and Exchange Board of India (Sebi), the capital markets regulator, has revoked the registrations of 39 stock brokers, seven commodity brokers, and 22 depository participants.
The decision was made on Friday, following the failure of these entities to comply with the registration requirements as outlined in Sebi’s orders.
Sebi observed that the 39 stock brokers and seven commodity brokers were initially granted registrations on the condition that they continue to be members of a recognized stock exchange.
Nevertheless, the registrations of these entities have been revoked as a result of their expulsion as members by the stock exchanges and their failure to meet the requirements of the Broker Regulations, 1992.
In the same vein, the 22 depository participants whose registrations were canceled had their agreements with depositories terminated. Upon receiving notification from the depositories, Sebi determined that these entities no longer satisfy the registration requirements outlined in the DP Regulations, 2018.
The primary reason for the cancellation of these registrations is to prevent the misuse of Sebi registration. The objective of this action is to safeguard investors who may otherwise be unaware of the inactive status of these intermediaries.
Sebi reiterated that these entities remain accountable for any actions they took or failed to take as stock brokers, commodity brokers, or depository participants, despite the cancellation. Additionally, they are accountable for the payment of any outstanding interest and dues that are owed to Sebi.
In its order, Sebi mandated that all of these entities must “ensure the maintenance and preservation of records and other documents that are required to be maintained under the relevant regulations; redress investor grievances; transfer of records, funds, or securities of its clients; continuity of service to its clients; and necessary actions concerning the defaults or pending action, if any.”
The list of stock brokers whose registrations have been cancelled includes:
1. Bezel Stock Brokers Private Limited
2. Reflection Investments
3. Action Financial Services (India) Ltd
4. Sumpoorna Portfolio Limited
5. 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. 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
