SEBI Cancels Registration Of 4 Brokers After Expulsion From Stock Exchange Membership

The market regulator cancelled registration of four stock brokers Single Window Securities, Sunness Capital India, GACM Technologies and Infotech Portfolio on Wednesday after allegedly failing to meet registration requirements.

In four separate orders, the Securities and Exchange Board of India (SEBI), cancelled the registration certificate of the four brokers to prevent misuse of the market regulator registration without being a member of a recognised stock exchange, on unaware investors.

The market watchdog had granted registrations subject to certain conditions, including the condition that the four brokers continue to be members of a recognised stock exchange after being expelled.

“Since the entities are no longer holding membership of any recognised stock exchange, they no longer fulfil the conditions stipulated under Regulation 9 of the Broker Regulations by which Certificate of Registration was granted to them,” said SEBI order.

The market regulator noted that the four brokers no longer meet the conditions required for holding a stock broker registration under the Broker Regulations stipulating that stock brokers must be members of recognised stock exchanges.

The four brokers after cancellation of their registration would remain liable for any actions they took or failed to take as stock brokers and would be responsible for paying any outstanding fees, dues and interest owed to SEBI.