Market regulator Securities and Exchange Board of India (SEBI) has taken strong action against four stock brokers and has cancelled their registration. SEBI has taken action against these brokers after they failed to fulfill the registration requirements.
According to the news, these stock brokers were not members of any recognized stock exchange. According to the Economic Times news, the names of these brokers are – Single Window Securities, Sunness Capital India, GACM Technologies and Infotech Portfolio.
Brokers will be responsible for these things
According to the news, the market regulator said in an order that all four stock brokers will also be responsible for paying any outstanding fees, dues and interest payable to SEBI. The market regulator said that the main reason for cancelling their registration is to prevent them from misusing their SEBI registration certificate without becoming a member of a recognized stock exchange.
SEBI said that these entities no longer fulfil the conditions required for stock broker registration under the Broker Regulations, 1992, which provide that stock brokers should be members of recognised stock exchanges. SEBI followed due legal procedures under the Intermediaries Regulations, 2008 before cancelling the registration of the brokers. This ensured that the process was transparent and in accordance with regulatory requirements.
They were also fined
SEBI imposed a fine of Rs 5 lakh on Anand Rathi Shares and Stock Brokers Limited for regulatory violations. According to the order passed by SEBI, the company has been directed to pay the fine within 45 days. Also, Motilal Oswal Financial Services Limited has been fined Rs 7 lakh for violating the stock broker and depository participant rules. According to the order passed by SEBI, the company has been directed to pay the fine within 45 days. SEBI recently said that it has developed a web-based portal for submission of initial and final root cause analysis (RCA) reports by stock exchanges and other market infrastructure institutions (MIIs) regarding technical glitches.
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