Lok Sabha Question No. 59 (UNSTARRED), answered on 2021-07-19
Subject: Stock Market Scams
Ministry: FINANCE
Asked by: Arvind Ganpat Sawant

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 59 ANSWERED ON 19 TH  JULY, 2021/ ASHADHA 28, 1943 (SAKA) STOCK MARKET SCAMS

## 59: SHRI ARVIND GANPAT SAWANT

Will the Minister of Finance be pleased to state: (a) the status of the progress of CBI FIR against National Stock Exchange of India Limited in the Rs.75,000 Crore Co-location scam; the details of planned SEBI actions against NSE management and Karvy management in Rs.2500 Crore Karvy Scam in which several lakh customers have not yet received their money

(b) along with the time by which SEBI plans to take these actions;

(c) the  actions  which  SEBI  plans  to  take  against NSE management and broker in Rs.1000 Crore BMA Wealth case along with the time by which SEBI plans to take  these  actions;  and (d) the  actions  which  SEBI  plans  to  take  against NSE management and Anugrah stock broker owners in Rs.1200 crore scam?

## ANSWER SHRI PANKAJ CHAUDHARY MINISTER OF STATE FOR FINANCE

(a) CBI has registered a case in the matter of preferential access at the co-location facility of National Stock Exchange of India Limited, vide RC No.AC I 2018A0011 dated 28.05.2018, under section 120B & 204 of Indian Penal Code, Sections 7, 12 & 13 (2) read with 13(1) (d) of Prevention of Corruption Act, 1988 and under section 66 of Information Technology Act, 2000. Presently, the case is under investigation.

(b) SEBI has already passed orders in the matter of Karvy Stock Broking Limited (KSBL) and initiated action against Directors  and  Key Management Personnel (KMP) of KSBL. In addition, adjudication proceedings have been initiated against both NSE and Bombay Stock

Exchange (BSE) for violating provisions of SEBI circulars. This is in addition to the criminal complaints filed by the NSE and its declaration of the broker as a defaulter. Claims of investors have been invited through a public notice.

(c) SEBI has already passed orders in the matter of BRH Wealth Kreators Limited (BRH; formerly  BMA  Wealth  Creators  Limited)  and  against  HDFC  Bank  Limited  in  the  matter. Further, SEBI has initiated enforcement proceedings against BRH, BRH Commodities Private Limited (BRHCPL), their KMPs and related entities as well as approved filing prosecution against BRH, BRHCPL and their KMPs for mis-utilisation of funds and securities of clients, diversion of funds and non-cooperation. This is in addition to the criminal complaints filed by NSE and its declaration of the broker as a defaulter. Claims of investors have been invited through a public notice.

(d) SEBI  has  already  passed  order  in  the  matter  of  Anugrah  Stock  &  Broking  Private Limited (ASBPL) and initiated enforcement proceedings against ASBPL, its related entities and  their  KMPs.  Application  for  prosecution  has  been  filed  against  aforesaid  entities,  for engaging  in  Derivative  Advisory  Services  in  the  nature  of  Portfolio  Management  Services promising assured returns without seeking registration under relevant SEBI Regulations. This is  in addition to the criminal complaints filed by NSE and its declaration of the broker as a defaulter. Claims of investors have been invited through a public notice.