Markets regulator, Securities and Exchange Board of India (SEBI), on Wednesday cancelled the registration of four stock brokers - Single Window Securities, Sunness Capital India, GACM Technologies and Infotech Portfolio - after they failed to meet the registration requirements.
The main reason for cancelling the registration certificate of these entities is to prevent them from misusing their SEBI registration without being a member of a recognised stock exchange, on unaware investors, the regulator said in four separate orders.
Despite the cancellation of their registration, these entities remain liable for any actions they took or failed to take as stock brokers. They are also responsible for paying any outstanding fees, dues, and interest owed to SEBI, it added.
In its orders, SEBI said that four stock brokers were granted registrations subject to certain conditions, including the condition that they continue to be members of a recognised stock exchange.
Considering these entities are no longer members of any stock exchange, SEBI noted that these entities no longer meet the conditions required for holding a stock broker registration under the Broker Regulations 1992, which stipulates that stock brokers must be members of recognised stock exchanges.