The Market Regulator Indian Securities and Exchange Board (SEBI) has canceled their registration by taking strong action against four stock brokers. SEBI has taken action on these brokers after failing to meet the registration requirements. According to the news, these stock brokers were not members of a recognized stock exchange. According to the Economic Times news, the names of these brokers are single window securities, sunness capital India, GACM technology 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 would also be responsible for paying any outstanding fees, dues and interest payable to SEBI. Market Regulator said that the biggest reason for canceling their registration is to prevent them from misusing their SEBI registration certificate without becoming a member of the recognized stock exchange.
SEBI said that these institutions no longer meet the conditions required for stock broker registration under Broker Regulation 1992, which provides that stock brokers should be members of recognized stock exchanges. SEBI followed the appropriate legal procedures under the Menti Regulations, 2008 before canceling the registration of the brokers. This ensures that the process was transparent and the regulator was according to the need.
They were also fined
SEBI imposed a fine of Rs five lakh on Anand Rathi Share and Stock Brokers Limited for regulatory violations. As per the order passed by SEBI, the company has been directed to pay the fine within 45 days. Also, Motilal Oswal Financial Services Limited has imposed a fine of Rs seven lakh for violating the share broker and depository partner rules. As per the order passed by SEBI, the company has been directed to pay the fine within 45 days. SEBI recently stated that it has developed a web-based portal to present the initial and final basic cause analysis (RCA) report by stock markets and other market infrastructure institutions (MII) about technical disturbances.
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