𝐂𝐨𝐦𝐩𝐞𝐧𝐬𝐚𝐭𝐢𝐨𝐧 𝐜𝐥𝐚𝐢𝐦𝐬 𝐩𝐥𝐮𝐧𝐠𝐞 𝐚𝐬 𝐒𝐞𝐛𝐢 𝐜𝐫𝐚𝐜𝐤𝐝𝐨𝐰𝐧 𝐢𝐧𝐭𝐞𝐧𝐬𝐢𝐟𝐢𝐞𝐬

The Financial Express has published an article highlighting the impact of SEBI’s intensified crackdown on compensation claims in the financial sector.

The Securities and Exchange Board of India (SEBI)’s crackdown on 𝐬𝐭𝐨𝐜𝐤𝐛𝐫𝐨𝐤𝐞𝐫𝐬’ 𝐦𝐢𝐬𝐮𝐬𝐞 𝐨𝐟 𝐜𝐥𝐢𝐞𝐧𝐭 𝐟𝐮𝐧𝐝𝐬 𝐚𝐧𝐝 𝐬𝐞𝐜𝐮𝐫𝐢𝐭𝐢𝐞𝐬 has resulted in a significant fall in compensation claims filed by defrauded investors since the peak during the 𝐊𝐚𝐫𝐯𝐲 𝐬𝐜𝐚𝐧𝐝𝐚𝐥.

Our Founder and Managing Partner, Mr. Sumit Agrawal, a former SEBI Officer mentioned that SEBI’s recent actions have drastically reduced the number of compensation claims by investors who were cheated by stockbrokers. This crackdown came after scandals involving companies like Anugrah and Karvy. While SEBI’s efforts to tighten regulations are commendable, the process of getting compensation can still be complicated. Recovering funds from defaulters and distributing them to investors is not easy, which can lead to frustration among investors.

Agrawal also highlighted that these strict measures might be seen as too much by stockbrokers. The compliance requirements are significant and apply uniformly regardless of the size or financial strength of the brokerage firms, which can be challenging for them to meet.

Another expert Mr. K.C. Jacob, counsel at Economic Laws Practice (ELP) Practice, mentioned that SEBI has completely revamped the rules for stockbrokers to prevent any cheating or manipulation and to protect investors. They’re closely monitoring all transactions involving money and securities to make sure everything is transparent and secure. It’s not just stockbrokers

Mr. Nithin Kamath, Founder and CEO of Zerodha, indicated that since 2019, SEBI has made many changes to make our markets safer and better for investors. These changes include separating client funds, making brokers do quarterly bank checks (quarterly settlement), stopping the pooling of funds for mutual fund transactions, and more.

Read the full article of The Financial Express for a deeper understanding of this issue: https://lnkd.in/dtM6egkq