Stocks

Anugrah Stock Broking toogets booted out of NSE, BSE

Our Bureau Mumbai | Updated on November 27, 2020 Published on November 27, 2020

Earlier, NSE had charged brokerage of running unauthorised derivative scheme

After declaring a large retail segment stock broker as a defaulter earlier this week, the National Stock Exchange declared another Mumbai based broker Anugrah Stock Broking a defaulter on Thursday. On Friday, even the BSE declared the broker as a defaulter.

Hundreds of crores of client money is stuck with the two brokerages now, sources said. This apart, there are more than a dozen brokers who have defaulted on their payment to clients in the past few years.

NSE said it had expelled Anugrah as its member from November 26. In August NSE had asked Anugrah to deposit ₹165 crore. The exchange had said that the broker was running an unauthorised derivative scheme.

“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.

Diverting to other biz

Just two weeks ago, SEBI had suspended Anugrah till the completion of the enquiry proceedings for alleged violation of several securities laws. It also directed Anugrah's directors and its affiliate company Teji Mandi Anlytics and its directors and Om Sri Sai Investments not to dispose of or alienate any assets till the completion of proceedings.

SEBI had based its actions on market intelligence that the broker was diverting client money into other businesses.

Anugrah is accused of collecting funds from clients under assured return schemes.

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

Till the completion of proceedings, Anugrah, its directors including Paresh Mulji Kariya and Sadhana Paresh Kariya, directors of Teji Mandi 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.

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Published on November 27, 2020
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