The Securities and Exchange Board of India (SEBI) has taken considerable action, canceling the registrations of 39 stock brokers, seven commodity brokers, and 22 depository participants. This decision, announced on August 30, 2024, stems from these firms' failure to follow essential compliance criteria, providing a possible danger to investors, as outlined in a PTI report.
SEBI's principal goal in withdrawing these registrations is to avoid any abuse of their position, especially because these brokers are no longer active members of recognized stock exchanges or linked with depositories. The regulator noted, "This move aims to protect unsuspecting investors," emphasizing the need of a safe trading environment.
Despite the cancellations, the impacted firms are nonetheless responsible for their previous activities and must pay any outstanding dues to SEBI. They must also keep records, respond to investor complaints, and guarantee that their clients' services continue uninterrupted. SEBI stated that these brokers were first awarded registration on the condition that they maintain participation in a recognized stock market, which they no longer do.
Stock brokers such as Bezel Stock Brokers, Reflection Investments, and Quantum Global Securities have had their registrations canceled. The list also contains Aanya Commodities and Destiny Securities. Wealth Mantra Commodities and Sumpoorna Comtrade are among the seven commodities dealers that have been affected.
In addition to the brokers, SEBI has terminated the registrations of 22 depository participants, which are firms that allow for the electronic storage and transfer of securities. These participants were determined to have terminated their arrangements with depositories, so failing to satisfy the standards outlined in the Depository Participants Regulations of 2018.
The list of canceled registrations include:
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
The revocation of registrations is part of SEBI's continuous efforts to protect the integrity of the capital markets and ensure that only compliant businesses operate within them. The regulator has emphasized that all parties concerned must take the appropriate procedures to address any defaults or ongoing concerns, ensuring that investor interests are protected.
