Fact Check
SEBI Cancels Registration of Four Stock Brokers for Regulatory Violations
New Delhi: The Securities and Exchange Board of India (SEBI) has cancelled the registration of four stock brokers—Single Window Securities, Sunness Capital India, GACM Technologies, and Infotech Portfolio—after they failed to meet regulatory requirements. In separate orders issued on Wednesday, SEBI stated that the primary reason for revoking their licenses was their failure to remain members of a recognized stock exchange, a key requirement to protect investors from potential fraud.
Why Did SEBI Take This Action?
Under the Broker Regulations, 1992, stock brokers must be members of a recognized stock exchange to operate legally. However, SEBI found that these companies lost their membership, violating this critical condition. The affected firms had previously been expelled by stock exchanges, and SEBI had already notified them of the issue.
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Brokers Still Liable for Past Actions
Although their registration certificates have been revoked, SEBI clarified that these companies remain accountable for any past misconduct. They are also required to clear outstanding fees, dues, and interest payable to SEBI.
Ensuring Market Transparency
The regulatory action was carried out in accordance with the Intermediary Regulation, 2008, aimed at safeguarding investor interests and maintaining market transparency.
SEBI’s crackdown on unregulated brokers reinforces its commitment to ensuring only qualified and compliant stock brokers operate in the financial market, protecting investors from fraudulent activities.
