NNM Securities Clarifies No Impact of Sebi Order on Broker Services

New Delhi, Jun 3 (PTI) NNM Securities has not been prohibited by Sebi from acting as a stock broker for its clients and will continue its trading activities without any disruption, the brokerage has clarified.

The clarification has come against the backdrop of Sebi's order dated May 30 that slapped fines totalling Rs 50 lakh on five entities, including NNM Securities, as well as imposed restrictions on market access for flouting market norms in the matter of Bhatia Communications and Retail (India) Ltd.

NNM Securities claimed that it sought clarification from Sebi on whether the prohibition included their activities as a stockbroker for their clients.

Thereafter, the markets watchdog said, "With the approval of the Competent Authority, it is clarified that the order has not prohibited NNM from acting as well as discharging any function in capacity of an intermediary registered with Sebi.

"Accordingly, it may be noted that above direction has not prohibited you (NNM Securities) from acting as stock broker for and on behalf of your constituents/clients," NNM Securities quoted Sebi as saying in a clarification.

Sebi in a May 30 order slapped penalties totalling Rs 50 lakh on five entities as well as restrained them from the securities markets for three years for flouting regulatory norms in the matter of Bhatia Communications and Retail (India) Ltd.


The regulator also directed the entities to disgorge the wrongful gain of Rs 7.49 crore made by them, along with 12 per cent interest per annum jointly and severally from July 2022 till the date of payment.
Sebi has imposed a fine of Rs 10 lakh each on NNM Securities, Miker Financial Consultants, Vibhuti Commodities, Festino Vincom, and Nikunj Anilkumar Mittal.

NNM Securities is a Sebi-registered market maker and stock broker, while Bhatia Communications was an SME scrip that migrated to the main board platform in September 2020.