The Securities and Exchange Board of India canceled Infotech Portfolio Pvt.’s registration on Wednesday, citing the stock broker’s expulsion from the National Stock Exchange on June 19, 2023.
SEBI Cancels Registration of Four Stock Brokers: SEBI Revokes Infotech Portfolio’s Stock Broker Registration
“Since the Noticee is no longer holding membership of any recognized stock exchange, it no longer fulfills the conditions stipulated under Regulation 9(a) of the Broker Regulations,1992 by which Certificate of Registration was granted to the Noticee,” according to the ruling issued by SEBI.
A stockbroker must be a member of a recognised stock exchange in order to maintain registration, according to the relevant regulations.
In this case, the regulator issued a show cause notice to Infotech Portfolio on January 31, 2024, however it was not delivered. The notice also stated that if Infotech Portfolio fails to respond within 21 days, it will be assumed that the firm does not have a rebuttal and the issue will proceed accordingly.
SEBI stated in its order that, despite the termination of registration, Infotech Portfolio will continue to be liable for any violations of security legislation regulations, as well as for paying any outstanding fees and dues. The regulator also stated that the action taken against Infotech Portfolio is intended to prevent any potential misuse of the broker registration.
According to the order, “the primary goal of canceling the Noticee’s certificate of registration as a stock broker is to stop it from abusing its certificate of registration with SEBI on unwary investors without being a member of a recognized stock exchange.”
In order to resolve investor complaints, transfer client records, funds, or securities, maintain client service, and take necessary action regarding defaults or pending actions, if any, SEBI also instructed Infotech Portfolio to keep any records that might be needed under applicable security law provisions.
