NSE, BSE declare Anugrah Stock as defaulter, expel from memberships

Topics NSE | Indian stocks | Stock broking

Photo: Reuters

Leading stock exchanges BSE and NSE have declared Anugrah Stock & Broking as a defaulter and have expelled the brokerage house from respective memberships.

The move comes days after a similar action was taken by the stock exchanges against Karvy Stock Broking.

"The exchange has declared Anugrah Stock & Broking Pvt Ltd, a corporate trading member, of the exchange as defaulter... also expelled the said trading member... with effect from November 27, 2020," BSE said in a circular on Friday.

Investors having any outstanding claims against the brokerage house have been asked to file their claims with the exchange within 90 days (by February 25, 2021), it added.

In a separate circular on Thursday, NSE said the trading member has been "expelled from the membership of the exchange... and has been declared as defaulter... with effect from November 26, 2020, after close of market hours".

On November 13, markets regulator Sebi suspended Anugrah Stock & Broking Pvt Ltd (ASBPL) till the completion of enquiry proceedings after finding that it violated several market norms.

The matter pertains to involvement of ASBPL in activities other than securities, collecting funds from clients under assured return schemes, misappropriation of clients' funds and securities, among others.

In addition, the regulator passed directions against the directors of ASBPL, Teji Mandi Analytics, its directors and Om Sri Sai Investments.

Teji Mandi Analytics was registered with NSE as an authorised person of ASBPL while Om Sri Sai Investments was a sister concern of ASBPL.

Till the completion of proceedings ASBPL, its directors -- Paresh Mulji Kariya and Sadhana Paresh Kariya --, Teji Mandi Anlytics, its directors -- Anil Gopal Gandhi and Riddhi Kalapi Shah --, and Om Sri Sai Investments have been directed not to dispose of or alienate any assets except with the prior permission of NSE, as per the Sebi order.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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