Sebi cancels Sahara India Financial Corp’s registration as sub-broker

The regulator had appointed a designated authority in 2018 to enquire whether Sahara India Financial violated provisions of Intermediaries Regulations

Topics
SEBI | Sahara India | broker

Markets regulator Sebi on Wednesday cancelled the certificate of registration of Sahara India Financial Corporation as a sub-broker citing its failure to fulfill the “fit and proper” criteria. The regulator had appointed a designated authority in 2018 to enquire whether Sahara India Financial violated provisions of Intermediaries Regulations.

According to the designated authority’s report, considering the antecedents of Subrata Roy Sahara and the various judicial pronouncements against him and other group companies of Sahara, it is determined that Sahara India Financial (noticee) is not a “fit and proper person” to continue as a sub-broker in the securities market.

Subrata Roy is a substantial shareholder in the company, Sebi noted in an order, adding that it is the duty of the regulator to constantly monitor the “fit and proper person” criteria of intermediaries to maintain the integrity of the securities market.

In the 12-page order passed on Wednesday, Sebi Whole Time Member G Mahalingam said that he was in agreement with the findings of the designated authority that the noticee is not a “fit and proper person” in terms of Inter-mediaries Regulations.

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First Published: Thu, March 04 2021. 00:54 IST

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