31st Broker Default as NSE Withdraws Trading Rights of Concunsmart Share and Stock Broker
Moneylife Digital Team 23 April 2022
Concunsmart Shares and Stock Brokers Pvt Ltd (Concunsmart) has become the 31st broker, since May 2019, to be expelled by the National Stock Exchange (NSE) for non-adherence to regulatory provisions. According to NSE, the Mumbai-based broker's trading rights have been withdrawn in equity, futures & options (F&O) and commodity segments from 18 April 2022.
The NSE notification says, “The Exchange has withdrawn the trading rights of the following member in all segments, with effect from 18 April 2022 (before market hours), on account of non-adherence to the regulatory provisions, till further notice.”
Concunsmart claims to serve 8,000+ clientele across the country on a trading platform backed by its partners Prashant Angane and Pallavi Angane. Concunsmart operated as a sub-broker for 11 years before becoming a member of NSE and BSE vide SEBI registration number INZ000205429.
This is the 31st time, NSE has taken action against is member-broker. Since May 2019, there have been a series of 31 broker defaults (including Modex International Securities, Anugrah Stock and Broking Pvt Ltd, Karvy Stock Broking, BMA Wealth Creators, Fairwealth Securities) on NSE. 
Since January 2020, the beginning of the COVID pandemic, the number of broker defaults, most of which are found to be misusing client funds or securities, has reached 26. NSE expelled four brokers in 2019, 14 in 2020, 10 in 2021 and two in the first two months of 2022, taking the total number of brokers defaulted and expelled by NSE to 30.
Moneylife has been writing about the sudden increase in broker defaults in the past three years which has led to thousands of investors losing big chunks of their savings. Our ‘well-regulated capital market’, which boasts multiple safeguards such as investor protection funds and settlement guarantee funds, has turned out to be a mirage. (Read: 20 Broker Defaults: It’s Time the Finance Minister Demanded These Specific Actions)
Most broker defaults have inflicted crippling losses on investors, although the settlement guarantee ensures no impact on the market itself. In many cases, brokers used investors’ shares to obtain leverage and take speculative positions on the derivatives market leading to losses. 
Sometimes, they passed back a little interest for the pledged shares; but, in many cases, investors were unaware of their shares being pledged.
For instance, in 2019, Karvy Stock Broking was banned by the Securities and Exchange Board of India (SEBI) for defaulting clients for around Rs2,000 crore, making it one of the biggest such cases in India.
Among the recent expulsions are: Sumpoorna Portfolio Ltd, Action Financial Services Ltd, Reflection Investments, Bezel Stock Brokers Pvt Ltd, Conard Securities Pvt Ltd, Arcadia Share & Stock Brokers Pvt Ltd, Star Share & Stock Brokers Pvt Ltd, Destiny Securities Ltd, and Stampede Capital Ltd
This list does not include the two firms which abruptly closed their capital market business of their own accord (voluntarily). One is IndiaNivesh, whose voluntary closure has led to litigation between HDFC Bank and Edelweiss Custodial Services and exposed the shady practice of ‘funded fixed deposits’ being accepted by the clearing corporation as collateral. In this case, the dispute is over a Rs100 crore funded FD, which HDFC Bank refused to honour.  The other was Action Financial, which initially claimed to have done a voluntary closure but was later expelled by the exchange since it had failed to refund investors money. (Read: IndiaNivesh, Edelweiss & HDFC Bank: The Curious Case of Rs100 Crore Fixed Deposit Receipts)
In June last year, SEBI issued a framework to minimise the risk of misuse of investor funds by stockbrokers. The new measures are part of the market regulator’s effort to prevent misappropriation and misuse of client funds by brokers and also to protect the clients in the event of a default by the brokers. (Read: SEBI Develops System to Detect Misuse of Client Securities by Brokers)
This follows several instances of brokers misusing clients’ securities for trades that were not authorised by them and submitting false information to stock exchanges. 
Unfortunately, nothing seems to stem the spate of broker defaults and voluntary closures of business by brokerage firms—especially among commodity brokers.
3 months ago
I have Invested my hard earned money on 05.8.2021 till date no reply no interest also submitted on stamp paper as required by them in their Bhandup office but now all are closed and no calls no reply .They are just using our money
2 years ago
Hi It is good place on investment and i am getting good returned from Concunsmart since last five years
2 years ago
I have invested 3 lacs in concunsmart last year january2021. Its been 1 and half year i haven't received my money back.now they have deleted their app and no one answers the call. Its my hard earned money ????????. Can anyone please help me in this matter to get my money back ????
Replied to tiaarora2304 comment 2 years ago
Same here invested 4 lakhs and only got first interest that too after calling them many times. Recently they have told their clients to fill a form which says that clients have given a loan to the owner and on the basis of that they will give the money back (with stamp paper attached). So investors will only get the principal amount. People having investment below 5 lacs will get by May after submitting the form in the office while the rest will get after August. They have deleted the data from their app and website and nobody picks up calls as to when we will get the money although they have said May but cannot trust them anymore with dates.
Replied to kushkhanna339 comment 2 years ago
Ok you will get your pending amount asap if Concunsmart save else sabhi ke jsyege
Replied to pradeepvb7777 comment 11 months ago
Since last two years they are giving hope to trust on them only. Now they are forcing to convert into forex with 10% more addition and they will receive 3% for 50months. We are not getting how to invest more and add more risk here. There is no communication from them all contact numbers are false. If any one has information please share.
Replied to praveencloud06 comment 11 months ago
It's not forex, it's for-ex pls see the form carefully. When asked anganes staff says it means FOR EXTRA MONEY. Now is rent agreement is also getting over. He will vacant bhandup office anytime. I too don't understand what to do. When to his office so many times with other investors, When we raise our voice asking our money back anganes staff calls police.
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