A broker has been punished by NSE as it's AP was not following the rules and regulations which strictly prohibit from running fixed returns schemes as form of investments. The brokers name is Profitmart, and for this NSE has asked Profitmart to not register any new clients in any of the trading segments or even registering new Authorised Persons. Here's a link to the NSE order dated 12-07-2022: https://static.nseindia.com//s3fs-public/inline-files/MCSGFC%20Interim%20Order_Profitmart%20Securities%20Pvt.%20Ltd..pdf In case you are a client with Profitmart then here's in brief the details as mentioned in the report that are vital to your interests with this broker. NSE has alleged that Inspection of the Profitmart books of accounts and records covering the period September 1, 2020, to August 31, 2021. Post-inspection, the Exchange issued a show-cause notice dated May 9, 2022, for the observed non-compliance with the regulatory provisions. Further Profitmart has failed to report the inspection of APs and records of the operations carried out by APs to date. Also, one of the Noticee’s APs viz. lncofina Consultants LLP ("lncofina") has engaged in the activity other than those permitted, i.e., collecting money from clients/investors for schemes and promising assured returns to the clients/investors. NSE observed that the Profitmart provided a margin trading facility in unapproved securities in the case of 19 out of 205 scrips selected for sample scrutiny (9.27%) Additionally, Profitmart failed to settle clients’ funds and securities in 5 out of 200 instances selected for sample scrutiny (2.5% of the total instances verified) involving Rs.3.46 crores. The broker delayed the settlement of clients’ funds and securities by 9 to 27 days in 5 out of 200 instances selected for sample scrutiny. NSE observed that Profitmart granted exposure to clients beyond the fifth trading day, as reckoned from the date of pay-in despite debit balance in the client ledgers in 8 out of 35 instances selected for sample scrutiny, involving Rs.1,75,39,844/-. Also, Profitmart failed to report the inspection of the APs and records of operations carried out by APs and take appropriate necessary action. lncofina is running a scheme called “lnco Plus” wherein a minimum investment of Rs.1 lakh is solicited, and a return of 6.25% every quarter is offered. The scheme document mentions that the funds will be managed from the client’s Demat account, indicating the Noticee’s involvement. Earlier Authorised Person- Planify Consultancy India Private Limited, against whom investor complaints were received by the Exchange alleging assured return schemes operated by the said AP. Based on the directions of the Exchange, the registration of the said AP was cancelled. Despite various investor complaints against its Authorised Persons involving the operation of assured returns schemes and failure to report inspections undertaken to the Exchange, was not able to demonstrate its capability to have effective oversight and supervision over its APs. Profitmart is prohibited from registering new clients in all segments with immediate effect until further direction.It is further prohibited from registering new APs with immediate effect until further direction. ✅Follow us on Social Media Handles: Instagram - https://bit.ly/adb_insta Twitter- https://bit.ly/adb_twt Facebook- https://bit.ly/adb_fb LinkedIn- https://bit.ly/adb_linkdin 🎧 Listen to Our Podcast on Spotify: https://spoti.fi/3JnpmSQ 🎥Subscribe to our Stock Market Learning Channel: https://bit.ly/sp_ytube 🎥Subscribe to our Vlog Channel ADB Vlog - https://bit.ly/adb_vlog ✅Visit Our Website https://www.adigitalblogger.com/ ✅Visit our Hindi Website https://hindi.adigitalblogger.com/

• published: 16 Jul 2022
• views: 17472