Taking stern action for failing to meet regulatory requirements, Securities and Exchange Board of India (SEBI) has cancelled the registration of 39 stockbrokers and seven commodity brokers. Further, SEBI cancelled the registration of 22 depository participants (DPs) who are no longer affiliated with any depository. Punjab and Maharashtra Co-Operative (PMC) Bank Ltd and Arcadia Share and Stockbrokers Pvt Ltd are among the DPs whose registration is cancelled by SEBI.
SEBI issued three separate orders, one for stockbrokers, one for commodity brokers and the last one for DPs. It says the main reason for cancelling the registration certificate of these entities is to prevent them from misusing their SEBI registration without being an active participant of a depository or a member of a recognised stock exchange, thereby protecting unaware investors.
Stockbrokers whose registration is cancelled are Bezel Stock Brokers Pvt Ltd, Reflection Investments, Action Financial Services (India) Ltd, Sumpoorna Portfolio Ltd, Vineet Securities Pvt Ltd, Quantum Global Securities Ltd, Wellindia Securities Ltd, Vrise Securities Pvt Ltd, Credential Stock Brokers Ltd, Aanya Commodities Pvt Ltd, Amber Solutions Pvt Ltd, Arcadia Share & Stock Brokers Pvt Ltd, CM Goenka Stock Brokers Pvt Ltd, Destiny Securities Ltd, Bhavesh Dhirajlal Stock Broking Co Ltd, Enrich Fin & Securities Ltd, First Futures and Stocks Pvt Ltd, Ganga Yamuna Finvest Pvt Ltd, Gems Equities & Securities Pvt Ltd, Indovision Securities Ltd, Olympia Securities Ltd (Investnet Securities India Ltd), Century Consultants Ltd, Merfin (India) Ltd, Micro Forex Equity & Derivatives Pvt Ltd, Moneyflo Securities Pvt Ltd, Mousumi Deb Roy (Goodluck Securities), Orient Capital Markets Pvt Ltd, Orion Capital and Debt Market, Parikh & Shah Finvest Pvt Ltd, Prem Somani Share Brokers Pvt Ltd, Prime Broking Company (I) Ltd, Rusoday Securities Ltd, Saarc Net Ltd, Star Share & Stock Brokers Ltd, Unicon Securities Pvt Ltd (Unickon Securities Pvt Ltd), Wealth Mantra Ltd, Yuvraj Securities, Classic Share & Stock Broking Services Ltd and Grovalue Securities Pvt Ltd.
However, SEBI clarifies that these stockbrokers continue to be liable for anything done or omitted to be done as stockbrokers and continue to be responsible for payment of outstanding fees and dues and interest, if any, due to the market regulator.
Further, they will ensure to arrange for the 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, SEBI says.
The market regulator also cancelled the registration of Wealth Mantra Commodities Pvt Ltd, Sumpoorna Comtrade Pvt Ltd, Chaitanya Commodities Pvt Ltd, BVK Pulses Online Trading Company, Infonic India Financial Services Pvt Ltd, Financial Leaders Commodities and Wellindia Commodities Pvt Ltd.
SEBI says Multi Commodity Exchange of India Ltd (MCX) and NCDEX (National Commodity and Derivatives Exchange Ltd) informed it about the expulsion of these seven commodity brokers from the membership.
"I note that the commodity brokers are no longer holding membership of any recognised stock exchange. Thus, they have ceased to satisfy the conditions of registration stipulated under Regulation 9 (a) of Broker Regulations, 1992," says Sharad K Sharma, chief general manager (CGM) of SEBI, in the order.
DP, whose registration is cancelled by SEBI are: Moongipa Investments Ltd, Aarya Equity (India) Pvt Ltd, ASL Capital Holdings Pvt Ltd, Atlanta Share Shopee Ltd, Wealth Mantra Ltd, Ideal Stock Broking Pvt Ltd, PUG Securities Pvt Ltd, Grovalue Securities Pvt Ltd, Arcadia Share and Stockbrokers Pvt Ltd, Punjab and Maharashtra Co-Operative (PMC) Bank Ltd, Astitva Capital Market Pvt Ltd, Amtiger Consultants Pvt Ltd, First Futures and Stocks Pvt Ltd, Tradenext Securities Ltd, Click2trade Capital Ltd, Vasanti Share Brokers Ltd, Max Planwealth Securities Ltd, Action Financial Services (India) Ltd, Bright Shares and Stocks Pvt Ltd, MG Capital Services Ltd, Integrated Stock Broking Services Pvt Ltd, and Rajanarayan Capital Markets Services Ltd.
"The noticees shall ensure 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 with respect to the defaults or pending action, if any," SEBI says.
