4 Stockbrokers' Registration Cancelled for Non-compliance with Membership Requirements

Moneylife Digital Team 30 January 2025

Investor Interest

Markets regulator, Securities and Exchange Board of India (SEBI) has cancelled the registrations of four stockbrokers—Single Window Securities Ltd, Sunness Capital India Pvt Ltd, GACM Technologies Ltd, formerly known as Stampede Capital Ltd and Infotech Portfolio Pvt Ltd, after the brokers failed to comply with the necessary registration criteria.

The primary reason for the cancellations was to prevent these entities from exploiting their SEBI registration, while not being members of a recognised stock exchange, potentially misleading unaware investors, the market regulator says in four separate orders.

SEBI had issued a show cause notice (SCN) to all four brokers on 31 January 2024, but it remained undelivered. The SCN mentioned that if the brokers fail to reply within 21 days, it would be presumed that the firm does not have a rebuttal and the matter would proceed accordingly.

The market regulator further stated that, despite the cancellations, the brokers remain accountable for any actions they took or failed to take while operating as stockbrokers. They are also liable for clearing any pending fees, dues, or interest owed to SEBI.

SEBI's orders pointed out that the registration of these stockbrokers was granted under the condition that they maintain membership with a recognised stock exchange.

Since these entities no longer hold membership with any exchange, they no longer fulfil the conditions set forth by the SEBI Stock Brokers Regulations, 1992, which mandates stock brokers to be members of such exchanges.

The regulator emphasised that these four entities were expelled from their respective exchanges, with this information duly communicated to them.

Following the guidelines under the SEBI Intermediaries Regulations, 2008, the regulator has officially cancelled the registration certificates of these brokers.

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