Omkam Capital Markets is the 29th NSE broker declared defaulting and expelled

The National Stock Exchange (NSE) has declared Delhi-based Omkam Capital Markets Pvt Ltd as defaulting and expelled it from membership.

The NSE Notice issued on January 27, 2022 states: “All Members are hereby notified that the following Commercial Member has been debarred from trading under Rules 1 and 2 of Chapter IV of the NSEIL Rules and has been declared in default under of provision 1 (a) of Chapter XII of the Stock Exchange implementing laws of January 28, 2022, after the close of market hours.

In the same statement, the exchange states: “Members’ attention is also drawn to Sub-Rules 4(A) and 5 of Rule 8 of the Securities Contracts (Regulations) Rule 1957 (SCRR) which provides for the prohibition for persons to hold the office of director/partner in a company/enterprise if these persons had previously held the position of director/partner in a company/enterprise which had been a member of the Stock Exchange and was declared defaulting or kicked out by the stock exchange.”

Peeyush Aggarwal and Sachin Garg are the directors of Omkam Capital Markets Pvt Ltd.

In addition, the NSE has revealed a list of 16 Approved Persons (see list below) affiliated with Omkam Capital Markets Pvt Ltd who are now not authorized to trade in that capacity.

NSE has requested all Trading Members of the Exchange to comply with the relevant applicable provisions of Chapter XII of the NSEIL Articles of Association and Chapter IV of the NSEIL Rules with respect to their dealings with the aforementioned Trading Member.

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There has been a series of 29 broker defaults (including Modex International Securities, Anugrah Stock and Broking Pvt Ltd, Karvy Stock Broking, BMA Wealth Creators, Fairwealth Securities) on NSE since November 2019 till date.

Moneylife wrote about the sudden increase in broker defaults over the past two years, which has led to thousands of investors losing a large portion of their savings. Our “well-regulated capital market”, which enjoys multiple protections such as investor protection funds and settlement guarantee funds, has proven to be a mirage. You can read this story here.

Here is the list of failing brokers: