New Delhi: Markets regulator Sebi has cancelled the registration of Click2Trade Capital as it "grossly" failed in performing its duties as a stock broker and made serious lapses in maintaining infrastructure and did not redress investor grievances.
The regulator, which initiated enquiry proceedings against Click2Trade in respect of alleged violation of stock brokers norms, found that the entity failed to segregate its own transactions from that of its clients, reported incorrect margin and used client bank accounts for other than specified purposes.
"The noticee (Click2Trade) grossly failed in performing its duties as a registered stock broker and failed to comply with the conditions of certificate of registration. It was also observed that by making serious lapses in maintaining infrastructure and by failing to redress the investor grievances, the noticee has acted against the integrity of the securities market," the regulator said in an order passed on Monday.
Further, the Securities and Exchange Board of India (Sebi) noted that Click2Trade has been declared a defaulter and expelled from the memberships of BSE, National Stock Exchange and Metropolitan Stock Exchange and hence, does not satisfy the condition of registration under the broker regulation.
Accordingly, the regulator said, "the certificates of registration of the noticee i.e. Click2Trade Capital Ltd, as a stock broker, shall be cancelled with immediate effect".
