SEBI Cancels Stock Broker Infotech Portfolio's Registration

The Securities and Exchange Board of India on Wednesday cancelled the registration of Infotech Portfolio Pvt. as the stock broker has been expelled from the National Stock Exchange since June 19, 2023.

"Since the Noticee is no longer holding membership of any recognized stock exchange, it no longer fulfills the conditions stipulated under Regulation 9(a) of the Broker Regulations,1992 by which Certificate of Registration was granted to the Noticee," the SEBI order read.

As per the concerned regulation, a stockbroker must be a member of a recognised stock exchange to retain registration.

In this regard, the regulator had also issued a show cause notice to Infotech Portfolio on Jan 31, 2024, but it remained undelivered. The notice had also mentioned that if Infotech Portfolio fails to reply within 21 days, it would be presumed that the firm does not have a rebuttal and the matter would accordingly proceed further.

SEBI, in its order, further noted that despite cancellation of registration, Infotech Portfolio will remain liable for any violations of security law provisions and will also continue to be held responsible for paying any outstanding fees and dues.

The regulator also noted that the purpose of the action taken against Infotech Portfolio is to prevent any misuse of the broker registration.

“The main purpose of cancellation of certificate of registration, as stock broker, of the Noticee is to prevent the misuse of its certificate of registration with SEBI, without being a member of a recognized stock exchange, on unaware investors,” the order stated.

SEBI also directed Infotech Portfolio to preserve any records that may be required under relevant security law provisions with respect to redressal of investor grievances; transfer of records, funds or securities of its clients; continuity of service to its clients; and necessary actions with respect to the defaults or pending action, if any.