“IndiaNivesh nevertheless have managed to fulfil its settlement obligations during this period. The situation has been compounded owing to the present lockdown
and the credit freeze in the market and due to the same, they are unable to raise funds from financial institutions / Banks and thus the situation has become unfavourable. In light of the abovementioned circumstances, INSSPL has decided to disable all the services relating to stock broking (voluntary disablement),” the company said in a filing to the exchanges.
On March 29, IndiaNivesh had closed its portfolio management services (PMS) - SPROUT Portfolio - a small-cap focused portfolio. The broking firm, however, had cautioned then as well as regards its payment obligations.
“IndiaNivesh Investment Managers Private Limited, SEBI registered PMS arm has decided to close its current strategy which is Small Cap (Sprout) due to recent market turmoil and difficult economic circumstances due to ongoing Covid19 issues. As regards, Broking operations, we are regular in meeting all the Exchange obligations, however there have been some delays in releasing the pay outs due to current lock down (although Broking operations are exempted from the lock down, the critical staff are not able to reach the office for carrying out the smooth operations),” a company statement had said then.
Recently, Association of National Exchanges Members of India (ANMI) had requested the authorities to declare ‘share broking and depository services’ as essential services exempt from lockdown/curfew. Capital Markets, ANMI said, are the driving force for any economy, and it is important to keep the engine warm and running even while navigating through rough weather.
“State governments immediately need to notify Capital Markets
services, including share broking and depository services, as ‘essential services’ on a priority basis. Else, the market regulator needs to take a decision to order closure of the stock markets.
Any further delay can lead to serious systemic repercussions on smooth functioning of our Capital Markets and also put the economic future of India in serious jeopardy,” said Vijay Bhushan, President at ANMI.