Capital markets regulator, the Securities and Exchange Board of India (Sebi), has cancelled the registrations of 39 stock brokers, seven commodity brokers, and 22 depository participants. The decision, announced on Friday, comes after these entities failed to meet the necessary registration requirements, according to Sebi’s orders. [Full list below]
Reason for registration cancellation
Sebi noted that the 39 stock brokers and seven commodity brokers had originally been granted registrations on the condition that they remain members of a recognised stock exchange. However, since these entities have been expelled as members by the stock exchanges and are no longer fulfilling the conditions under the Broker Regulations, 1992, their registrations have been cancelled.
Similarly, the 22 depository participants whose registrations were cancelled had their agreements with depositories terminated. Sebi, after being informed by the depositories, concluded that these entities no longer meet the registration requirements under the DP Regulations, 2018.
The primary reason for the cancellation of these registrations is to prevent the misuse of Sebi registration. This move is aimed at protecting investors who might otherwise be unaware of the inactive status of these intermediaries.
Despite the cancellation, Sebi emphasised that these entities are still liable for any actions they took or failed to take as stock brokers, commodity brokers, or depository participants. They are also responsible for settling any outstanding dues and interest owed to Sebi.
Next steps
In its order, Sebi said all these entities will have to “arrange for maintenance and preservation of records and other documents required to be maintained under the relevant regulations; redressal of 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”.
Entities affected by Sebi’s cancellation
The list of stock brokers whose registrations have been cancelled includes:
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
https://www.business-standard.com/markets/capital-market-news/sebi-cancels-68-market-intermediaries-registrations-due-to-non-compliance-124083000663_1.html
