Capital markets regulator Sebi cancelled the registration of four stock brokers on Wednesday. The list of these entities include names of Single Window Securities, Sunness Capital India, GACM Technologies and Infotech Portfolio as they failed to meet the registration requirements.
The markets watchdog has cited prevention of misusing their registration without being a member of a recognised stock exchange, on unaware investors, the regulator said in four separate orders, citing the main reason for cancelling the registration certificate of these entities.
Despite the cancellation of their registration, these entities remain liable for any actions they took or failed to take as stock brokers. They are also responsible for paying any outstanding fees, dues, and interest owed to Sebi, the orders stated. SEBI added that these four brokers were granted registrations subject to certain conditions, including that they continue to be members of a recognised stock exchange.
Considering these entities are no longer members of any stock exchange, SEBI noted that these entities no longer meet the conditions required for holding a stock broker registration under the Broker Regulations 1992, which stipulates that stock brokers must be members of recognised stock exchanges.
Since the entities are no longer holding membership of any recognised stock exchange, they no longer fulfil the conditions stipulated under Regulation 9(a) of the Broker Regulations, 1992, by which Certificate of Registration was granted to them, Sebi said. These entities were expelled as members by the stock exchanges, and the information was communicated
Following the proper procedures outlined in the Intermediaries Regulations, 2008, SEBI has cancelled the registration certificates of these stock brokers.