SEBI has banned BRH Wealth Kreators (formerly BMA Wealth Creators), BRH Commodities Pvt Ltd and Anubhav Bhatter from the stock market for seven years while Prosperous Vyapaar Private Ltd, Polo-Setco Tie Up Private Ltd, Parton Commercial Private Ltd , AB Investments and Bluesnow Suppliers have been barred for five years in its final order.

Ashwani Batia, Whole Time Member, SEBI, in the final order also imposed a fine of ₹5 crore each on BRH Wealth Kreators and BRH Commodities, ₹1 crore on Anubhav Bhatter and ₹10 lakh each on the other above-mentioned entities.

It also directed the NSE Defaulters Committee to open and operate dedicated demat account where all the securities lying in the demat accounts of BRH Wealth Kreators and BRH Commodities. Besides, it also directed to open a dedicated bank account to transfer funds available in brokerage banks’ accounts.

2019 interim order

Earlier, SEBI in an interim order in 2019 had banned them from market (until further direction) after the National Stock Exchange investigation found misappropriation of ₹100 crore from client accounts by the broking firm.

SEBI said that the broking firms and others are liable to return the securities due to investors/clients or their monetary value as on the date of actual payment of money in lieu of shares under the supervision of NSE.

SEBI directed banks to ensure that no debits are made in the bank accounts held by them except for the purpose of payment of money to clients/investors under the written confirmation of the NSE.

The modalities of selling the assets, depositing the proceeds thereof in the escrow account should be worked out by the NSE, the regulator said.

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