India's capital markets regulator, Sebi, on Friday announced the cancellation of registrations for 39 stock brokers and seven commodity brokers who failed to meet the required conditions. The regulator also revoked the registrations of 22 depository participants who are no longer associated with any depository.
Sebi cited the need to prevent these entities from potentially misusing their registration status as the main reason for the cancellations. This action aims to safeguard investors from any misrepresentation by inactive members of recognised stock exchanges or depositories.
Despite the cancellations, the affected entities remain accountable for their previous actions as stock or commodity brokers and depository participants. They are also responsible for settling any outstanding fees, dues, and interest payable to Sebi.
The cancellations follow Sebi’s review, which revealed that these entities no longer fulfil the conditions required for registration.
Specifically, the 39 stock brokers and seven commodity brokers had their memberships terminated by stock exchanges, thus failing to meet the stipulations of the Broker Regulations 1992.
According to Sebi, these brokers were informed of their expulsion from stock exchanges, which was a prerequisite for their registration. With their memberships no longer valid, their registrations have been cancelled in accordance with the Intermediaries Regulations, 2008.
For the 22 depository participants, Sebi noted that their agreements with depositories had been terminated, and this information had been communicated to them.
Consequently, these entities no longer meet the registration requirements under the DP Regulations 2018. Their registrations have been revoked following due process.
Sebi's orders also require the affected entities to maintain records, address investor grievances, transfer client records, and ensure the continuity of service where applicable.
The list of cancelled stock brokers includes Bezel Stock Brokers, Reflection Investments, Sumpoorna Portfolio, Vineet Securities, Quantum Global Securities, Wellindia Securities, Vrise Securities, Credential Stock Brokers, Aanya Commodities, Amber Solutions, Arcadia Share & Stock Brokers, and C.M. Goenka Stock Brokers, among others.
The commodity brokers whose registrations have been cancelled are Wealth Mantra Commodities, Sumpoorna Comtrade, Chaitanya Commodities, BVK Pulses Online Trading Company, Infonic India Financial Services, Financial Leaders Commodities, and Wellindia Commodities Integrated Stock Broking Services.
Additionally, the depository participants whose registrations were revoked include Moongipa Investments, ASL Capital Holdings, Atlanta Share Shopee, Wealth Mantra, Punjab and Maharashtra Co-Operative Bank, Max Planwealth Securities, and Bright Shares and Stock.
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