Groww Invest Tech Pays Rs47.85 Lakh To Settle Platform Tech Issues with SEBI
Moneylife Digital Team 14 May 2025
Groww Invest Tech Pvt Ltd, formerly known as Nextbillion Technology Pvt Ltd, has settled another regulatory proceedings initiated by the Securities and Exchange Board of India (SEBI) by paying Rs47.85 lakh. The proceedings were related to multiple alleged violations under the SEBI Act, 1992, the Securities Contracts Regulation Act, 1956 (SCRA), and various circulars and regulations issued by SEBI.
 
The regulatory action against Groww Invest Tech stemmed from findings during inspections and demo sessions of its online trading application. SEBI says Groww Invest Tech had issued client retention statements containing discrepancies in financial ledger balances and margin obligations in 38 instances. It was also observed that the trading platform lacked the option to secure the best available market price and failed to implement interoperability between clearing corporations.
 
Furthermore, Groww Invest Tech was found to be offering non-securities services such as UPI-based payments, bill payments and lending under the secure login of its trading app services that could potentially expose clients to financial risk in case of UPI transaction disputes.
 
SEBI also noted that Groww Invest Tech had not implemented adequate risk management measures. This included the absence of an alternative trading access system during major app or web failures and the annual rather than biannual review of its business continuity plan. The platform was further criticised for not maintaining a proper surveillance framework to evaluate clients’ financial capabilities, failing to update financial or income details in 83 instances and lacking systems to generate alerts for margin or pay-in obligations disproportionate to a client’s financial strength.
 
In response to a show-cause notice (SCN) issued on 25 November 2024, Groww Invest Tech filed a settlement application on 30 January 2025, under SEBI's Settlement Proceedings Regulations, 2018. Following discussions with SEBI’s internal committee (IC) and a subsequent review by the high-powered advisory committee (HPAC), the case was recommended for settlement upon payment of Rs47.85 lakh. The panel of whole-time members (WTM) of SEBI approved the recommendation on 2 May 2025, and Groww Invest Tech confirmed payment of the settlement amount on 6 May 2025.
 
With the receipt of the settlement amount, SEBI has disposed the adjudication proceedings initiated against Groww Invest Tech. However, the settlement is without prejudice to SEBI’s right to reopen the matter if it is found that Groww Invest Tech failed to make full and true disclosures or violated any undertakings given as part of the settlement process.
 
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