SEBI issues show cause notices to over 120 stockbrokers for continued association with algo platform Tradetron: Report
Oct 8, 2024
Some of the prominent brokerages that have received the notice for potential violation of regulations include Motilal Oswal Financial Services Ltd., Zerodha and 5Paisa Capital, a report said.
Capital markets regulator Securities & Exchange Board of India (SEBI) issued show cause notices to more than 120 stockbrokers for their association with the algo trading platform Tradetron, a report said.
Some of the prominent brokerages that have received the notice for potential violation of regulations include Motilal Oswal Financial Services Ltd., Zerodha, and 5Paisa Capital, NDTV Profit reported.
The notices were issued by SEBI as a part of its larger probe into Tradetron and other algo platforms. Many of these brokerage firms continued their association with Tradetron even after giving an undertaking to the regulator that they have discontinued their association with the platform, the report said.
Livemint could not independently verify the report.
Tradetron was displaying algo trading strategies promising assured returns on its website, Sebi noted. However, SEBI’s 2022 circular prohibits stockbrokers from any association with platforms offering assured returns.
According to the report, a total of 122 brokers were in violation of these regulations as they continued to have their API integrated with Tradetron.
The list of stockbrokers receiving Sebi notice include Aditya Birla Money, Arihant Capital Markets, Anand Rathi Share & Stock Brokers, Angel One, Ashika Stock Broking, Bonanza Portfolio, Choice Equity Broking, Geojit Financial Services, HDFC Securities, Hem Securities, ICICI Securities, IIFL Securities, and others, the report said.
JM Financial Services, Kedia Capital Services, Kotak Securities, Master Capital Services, Paytm Money, Phillip Capital (India), Profitmart Securities, Prabhudas Lilladher, Samco Securities, SMC Global Securities, Sharekhan, Swastika Investmart, Tradejini Financial Services, among others, have also received Sebi show cause notice, the news report added.
[Livemint]
