SEBI cancels registration of 'unfit' brokers
SEBI Monday ordered cancelling of registration of a stock broker and that of a sub-broker in two different cases, after they failed to meet the 'fit and proper' criteria for operating in the stock market.
Mumbai: SEBI Monday ordered cancelling of registration of a stock broker and that of a sub-broker in two different cases, after they failed to meet the 'fit and proper' criteria for operating in the stock market.
In the first order against Spurt Fincap Ltd, SEBI said that the brokerage firm had acted in collusion with a barred entity, Hoffland Group in obtaining exchange membership and it was associated/linked with the Hoffland Group.
SEBI has previously cancelled the registration granted to the Hoffland Group as its financial position had deteriorated so that their continuance in the securities market was not in the interest of investors.
The regulator ruled that Hoffland Group can also not be allowed to operate in the market through other enitites such as Spurt Fincap and it was not a 'fit and proper person' for the grant and continuance of certificate of registration as a stock broker.
In the second order, SEBI cancelled the registration of Shri Parshwa Finance, a sub-broker affiliated to the brokerage firm Jyotish Bhogilal Stock Brokers Pvt Ltd.
Shri Parshwa Finance was found to have violated SEBI regulations during the regulator's investigations into trading in shares of Shalibhadra Infosec Ltd for the period April, 2002 to July, 2002 and in the shares of Aditya Infosoft Ltd for the period December 04, 2003 to January 23, 2004.
In another order related to a transaction that took place in the year 2002, SEBI however decided that the lapses by a brokerage firm, TCP Stock Brokers, did not warrant any serious enforcement action and let it off with a warning to be more vigilant in executing client trades in future.