NSE suspends BMA Wealth Creators, leaves traders in the lurch

KS Badri Narayanan Shoba Roy Chennai | Updated on October 01, 2019 Published on October 01, 2019

The Kolkata-based broking house BMA Wealth Creators has been suspended by the NSE with immediate effect for non-compliance with the regulatory provisions of the exchange. The broking house, which has a presence across different States, has a licence to trade in the capital market, futures & options, currency derivatives and MFSS segments.

A BMA Wealth Creators’ franchisee owner, on condition of anonymity, said hehas been getting continuous calls from worried customers since Tuesday morning. “I have been associated with BMA Wealth Creators for the past 11 years and have a huge network of clients. Just yesterday I heard some of the offices in the central business district closing down, and since today morning I have been unable to trade. I do not know what to tell my clients,” he told BusinessLine.

The franchisee claims to have close to 200 clients with a total portfolio size of around ₹7-8 crore.

Some of the top company officials that the franchisee owner managed to contact during the course of the day confirmed that they have been rendered jobless overnight.

“Unfortunately, BMA Wealth Creators’ trading membership licence has been suddenly suspended by SEBI/ NSE today, because of which the company is closing its operations,” a message from a trader from the broking house said.

‘Insured’ clients

“Customers are requested to wait for official communication from the exchange and company on the withdrawal of funds and securities. The exchange has insured all clients who have funds/ securities of less than ₹25 lakh. For funds/ securities of more than ₹25 lakh, which will take 3-6 months, there will be arbitration after a formal complaint to the exchange. Clients are requested to file a complaint with SEBI and NSE,” the message added.

All open positions will be closed at the exchange tomorrow morning, the message further said.

“Please be informed that we employees had no idea about these developments and are still waiting for our salaries and official communication from the company, but will file a complaint with the exchange/ SEBI at the earliest to build pressure on the regulator,” the note from the trading members said.

Clients whose funds are in DP can get their shares transferred to other DPs.

According to BMA Wealth staff in Chennai, the company asked the customers to use their PAN to get their details from the NSE.

Published on October 01, 2019
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