Omkam Capital Markets is 29th Broker of NSE Declared Defaulter and Expelled

Moneylife Digital Team 28 January 2022

The National Stock Exchange (NSE) has declared Delhi-based Omkam Capital Markets Pvt Ltd as a defaulter and expelled it from its membership.

This is the 29th broker default on NSE since November 2019 and Moneylife has been covering this issue in great detail. (Read: 20 Broker Defaults: It’s Time the Finance Minister Demanded These Specific Actions).

The NSE notification which came out on 27 January 2022 says, “All members are hereby informed that the following trading member has been expelled from the membership of the Exchange under Rules 1 and 2 of Chapter IV of the NSEIL Rules and has been declared as defaulter under provision 1 (a) of Chapter XII of Exchange Bye laws w.e.f. 28 January 2022, after close of market hours.”

In the same release, the bourse says, “Member’s attention is also drawn to the sub-rule 4(A) & 5 under Rule 8 of Securities Contract (Regulations) Rule, 1957 (SCRR) which provides for disqualification on persons from holding the office of a Director/Partner in a company/firm if such persons had previously held the office of the Directors/partners in any company/firm which had been a Member of the Exchange and has been declared defaulter or expelled by the stock exchange.”

Peeyush Aggarwal and Sachin Garg are the directors of Omkam Capital Markets Pvt Ltd.

Additionally, the NSE has revealed a list of 16 authorised persons (see list below) affiliated with the Omkam Capital Markets Pvt Ltd who are henceforth not authorised to deal in that capacity.

NSE has requested all trading members of the Exchange to comply with the relevant applicable provisions of Chapter XII of the NSEIL Byelaws and Chapter IV of the NSEIL Rules in respect of their transactions with the above-mentioned trading member.

There have been a series of 29 broker defaults (including Modex International Securities, Anugrah Stock and Broking Pvt Ltd, Karvy Stock Broking, BMA Wealth Creators, Fairwealth Securities) on NSE since November 2019 till date.

Moneylife has been writing about the sudden increase in broker defaults in the past two years, which has led to thousands of investors losing big chunks of their savings. Our ‘well-regulated capital market’, which boasts multiple safeguards such as investor protection funds and settlement guarantee funds, has turned out to be a mirage. You can read this story here.

Here is the list of defaulting brokers :