Groww Invest Pays Over Rs 34 Lakh To Settle Matter With SEBI

Groww Invest Tech on Tuesday settled with markets watchdog Sebi a matter related to alleged failure to handle a technical glitch in January 2024 by paying Rs 34.12 lakh.

The order came after the broking company filed an application with SEBI proposing to settle the alleged violations 'without admitting or denying the findings of facts and conclusions of law' through a settlement order.

In its order, the regulator said that Groww Invest, formerly known as Nextbillion Technology, paid the settlement amount of Rs 34.12 lakh and therefore, 'in view of the acceptance of the settlement terms and the receipt of settlement amount...by SEBI, the instant adjudication proceedings initiated against applicant vide show cause notice dated October 11, 2024 is disposed of'.

The case emanated from a technical glitch that Groww's platform faced on January 23, 2024.

SEBI, in its show cause notice, alleged that Groww Invest, being a stockbroker, did not publish data or serve key values to the exchange on a logging and monitoring mechanism on January 23, 2024.

Also, the applicant did not allegedly have telephone lines, trading terminals, or employees for attending trading calls of clients, required during technical glitches, thus resulting in complete denial of service to all clients during the glitch period; and the applicant's VAPT process was ineffective, Sebi said in its notice.

SEBI had initiated adjudication proceedings against Groww Invest for the alleged violation of provisions of regulatory norms.