In a significant move aimed at safeguarding investors and maintaining the integrity of the capital markets, the SEBI has revoked the registrations of 39 stock brokers and seven commodity brokers. This decision comes after these entities failed to meet the necessary registration requirements set by the regulator. SEBI’s action is part of its broader strategy to prevent the misuse of registrations by entities that are no longer active participants in recognized stock exchanges or depositories, thus protecting investors from potential fraud and ensuring a transparent market environment.
On Friday, SEBI officially announced the cancellation of the registration certificates of these brokers. Additionally, the regulator also revoked the registration of 22 depository participants who are no longer associated with any depository. This comprehensive action underscores SEBI’s commitment to maintaining strict regulatory standards in the financial markets.
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
Reasons Behind SEBI Revokes Registrations
The primary reason behind SEBI’s decision to revoke these registrations is to prevent entities from misusing their SEBI registrations without being active participants in a depository or recognized stock exchange. According to SEBI, the cancellation of these registration certificates is a proactive measure to protect unaware investors from potential exploitation by inactive or non-compliant entities.
Despite the cancellation of their registrations, these entities remain accountable for any past actions or obligations. SEBI emphasized that these brokers and depository participants are still responsible for addressing any investor grievances, maintaining and preserving records, transferring records, funds, or securities of their clients, and ensuring the continuity of service to their clients. Furthermore, they are required to pay any outstanding fees, dues, and interest owed to SEBI.
SEBI’s orders detailed that the 39 stock brokers and seven commodity brokers were initially granted registrations under specific conditions, including the requirement to continue being members of a recognized stock exchange. However, since these entities are no longer members of any stock exchange, SEBI determined that they do not meet the conditions necessary to hold a stock broker registration under the Broker Regulations 1992.
The regulator also pointed out that these entities had been expelled as members by the stock exchanges, and this information was duly communicated to them. “Since the noticees are no longer holding membership of any recognized stock exchange, they no longer fulfill the conditions stipulated under…Broker Regulations, 1992 by which the certificate of registration was granted to the noticees,” SEBI stated in its order.
Following the procedures outlined in the Intermediaries Regulations, 2008, SEBI proceeded to cancel the registration certificates of these stock brokers. This action is part of SEBI’s ongoing efforts to enforce compliance and uphold the integrity of the financial markets.
Impact of SEBI Revokes on Depository Participants
In addition to the stock and commodity brokers, SEBI also revoked the registration of 22 depository participants. These entities were found to be non-compliant with the DP Regulations, 2018, as they were no longer participants in any depository. SEBI noted that the depositories had informed the regulator that their agreements with these entities had been terminated, leading to their disqualification as registered depository participants.
Similar to the stock brokers, these depository participants are still required to adhere to regulatory obligations despite the cancellation of their registrations. They must maintain and preserve records as required under the relevant regulations, address any investor grievances, and ensure the proper transfer of records, funds, or securities to their clients. SEBI’s decision to cancel their registrations followed the process outlined in the Intermediaries Regulations, 2008.
SEBI’s decisive actions serve as a reminder to all market participants of the importance of compliance with regulatory requirements. The regulator’s move to revoke these registrations is a clear message that entities failing to meet their obligations will face stringent consequences. As SEBI continues to monitor and enforce compliance in the capital markets, the protection of investors remains at the forefront of its regulatory mandate
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