NSE dismissed 3 brokers from membership:
To begin with, the NSE dismissed the 3 stock brokering companies. The dismissed companies such as Vrise Securities, Kaynet Finance and BMA Wealth Creators. Due to the tax avoidance practices for non-compliance with the National Stock Exchange.
Additionally, the NSE dismissed the 3 companies from the stock exchange membership. On 13th Feb, the NSE takes steps due to these companies failed to fulfill the exchange instructions.
As per regulations, the stock brokering agencies need to obey all the rules and regulations of stock exchanges and shouldn’t enter in any unethical or criminal conduct with others.
Similarly, the SEBI banned the stock exchanger from registring for 6 months due to ignoring the rules of the SEBI. SEBI imposed the fine of Rs 3 lakh for this stock exchange by the Securities Contract Regulator Act.
The Security and Exchange Board India announced to the stock exchanger about the restricted interval completed on Jan 2020. On Feb 13, the SEBI has introduced its online systems for earlier notice of clients misuse. It has used to secure the stockbroker and alert exchanges in case of diversions of investor funds.
It has applicable after the regulator acceptance and the stockbroker misused the securities received bt the clients. For surely to meet its settlements commitments of other clients.