Groww Invest Tech Pays Rs34.12 Lakh To Settle Technical Glitch Handling Case with SEBI
Moneylife Digital Team 13 May 2025
Groww Invest Tech Pvt Ltd (formerly known as Nextbillion Technology Pvt Ltd) paid Rs34.12 lakh to Securities and Exchange Board of India (SEBI) to settle an issue for failing to handle technical glitch on 23 January 2024. 
 
According to SEBI, being a specified stock broker, Groww Invest Tech did not publish data and serve key values to the exchange on LAMA (logging and monitoring mechanism) system on 23 January 2024. It did not have telephone lines, trading terminals, employees for attending trading calls of clients, required during technical glitches, thus resulting in complete denial of service to all clients during the glitch period and Groww Invest Tech’s vulnerability assessment and penetration tests (VAPT) process was ineffective
 
After the market regulator issued a show-cause notice (SCN), the broker proposed to settle the proceedings initiated against it, without admitting or denying the findings of facts and conclusions of law, through a settlement order.
 
After attending meeting with the internal committee (IC) of SEBI on 23 January 2025, in terms of the Settlement Regulations, Groww Invest Tech proposed revised settlement terms. The high powered advisory committee (HPAC) of SEBI in its meeting held on 13 March 2025, considered the settlement terms proposed and recommended that the case may be settled upon payment of Rs34.12 lakh by the broker as settlement amount towards the settlement terms.
 
The panel of whole-time members (WTMs) of SEBI approved the recommendation of the HPAC on 2 May 2025, after which the broker paid the settlement amount. 
 
"However, the settlement does not preclude SEBI from taking further enforcement action if any of the representations made by the applicants are found to be untrue or if they breach the terms of the settlement," the SEBI order says.
 
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