The regulator of the capital markets, SEBI, revoked Kaynet Capital, Kaynet Commodities, and Kaynet Finance’s registration as stock brokers on Monday for failing to meet the intermediaries’ rules’ requirements.
In addition, Kaynet Capital’s registration as a depository participant has been revoked by the Securities and Exchange Board of India (SEBI). The regulator stated that the three entities would continue to be responsible for paying any outstanding fees or dues to SEBI, regardless of the cancellation of the certificate of registration.
The regulator noted in three separate orders that the entities do not belong to any stock exchanges.
In November 2020, MCX ended its membership in Kaynet Commodities, and in February 2020, NSE ended its membership in Kaynet Finance.
Additionally, Kaynet Capital’s membership was terminated by BSE in August 2019. Its memberships in BSE and CDSL have been terminated almost three years ago.
The applicant must be eligible to be admitted as a member of the stock exchange through which it has applied to Sebi in order to register under the Stock Brokers Regulations. The entities no longer meet the rules’ requirements as a result of their membership being terminated.
The inquiry procedures initiated against the entities in accordance with the Intermediaries Regulations led to the current orders. SP PTI SHW
