The Securities and Exchange Board of India (SEBI) on Friday suspended Anugrah Stock & Broking Pvt Ltd (ASBPL) till completion of an inquiry for violation of several regulations.
The development comes on the back of market intelligence which showed that ASBPL was allegedly involved in business or activities other than securities and also collected funds from clients under assured return schemes.
NSE had submitted the forensic audit report in the matter of ASBPL to SEBI last month, which found offering of Derivatives Advisory Services (DAS) by ASBPL and a declared related party, misstatement about debtors and creditors, shortfall of client funds and client securities as on August 27, 2020. It also found discrepancies in the maintenance of records.
Trading terminal disabled
On August 3, 2020, the National Stock Exchange (NSE) disabled the trading terminal of ASBPL in the derivatives segment pursuant to advice of SEBI post which the broking firm moved the Securities Appellate Tribunal (SAT).
The firm failed to deposit the sum of Rs 165 crore by August 31, 2020, as directed by SAT.
SEBI on Friday directed disciplinary inquiry proceedings against ASBPL and proceedings for issuing regulatory directions against Paresh Mulji Kariya, Sadhana Paresh Kariya, the directors of ASBPL, Om Sri Sai Investments, Teji Mandi Analytics Pvt Ltd and the directors of Teji Mandi Analytics.
"ASBPL is suspended till the completion of the enquiry proceedings, as referred to at para 9 (i) under Chapter V of the SEBI (Intermediaries) Regulations, 2008 and Regulation 27 of SEBI (Stock Brokers) Regulations," it said.
(With inputs from IANS)