The National Stock Exchange has expelled Anugrah Stock & Broking Pvt Ltd from its membership and declared the firm as a defaulter.
Referring to Anugrah Stock & Broking, an NSE circular said, “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. November 26, 2020, after close of market hours.”
The development comes after the Securities and Exchange Board of India (SEBI) earlier this month suspended Anugrah Stock & Broking Pvt Ltd (ASBPL) till completion of an inquiry for violation of several regulations.
Market intelligence had showed that ASBPL was allegedly involved in business or activities other than securities and also collected funds from clients under assured return schemes.
The NSE had submitted the forensic audit report in the matter of ASBPL to the 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. It also found discrepancies in maintenance of records.
On August 3, the 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, as directed by SAT.
The SEBI 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.