Sebi cancels Sahara India Financial Corp's registration as sub-broker

Topics SEBI | Sahara India | broker

Markets regulator Sebi on Wednesday cancelled the certificate of registration of Sahara India Financial Corporation as a sub-broker citing its failure to fulfill the “fit and proper” criteria. The regulator had appointed a designated authority in 2018 to enquire whether Sahara India Financial violated provisions of Intermediaries Regulations.

According to the designated authority's report, considering the antecedents of Subrata Roy Sahara and the various judicial pronouncements against him and other group companies of Sahara, it is determined that Sahara India Financial (noticee) is not a "fit and proper person" to continue as a sub-broker in the securities market.

Subrata Roy is a substantial shareholder in the company, Sebi noted in an order, adding that it is the duty of the regulator to constantly monitor the "fit and proper person" criteria of intermediaries to maintain the integrity of the securities market.

In the 12-page order passed on Wednesday, Sebi Whole Time Member G Mahalingam said that he was in agreement with the findings of the designated authority that the noticee is not a “fit and proper person” in terms of Inter-mediaries Regulations.




Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel