Latest news with #GrowwInvestTech
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Business Standard
14-05-2025
- Business
- Business Standard
Groww Invest Tech pays Rs 47.85L to Sebi, settles regulatory lapses case
Groww Invest Tech on Wednesday settled a case pertaining to the alleged violation of stock brokers' rules and other norms after the online investing platform paid Rs 47.85 lakh towards settlement amount. The order came after the broking company filed an application with Sebi "without admitting or denying the facts and conclusion of law", through a settlement order. "In view of the acceptance of the settlement terms, the adjudication proceedings initiated against applicant vide SCN dated November 25, 2024 is disposed of," Sebi's Adjudicating Officer Amit Kapoor said. The case stemmed from a comprehensive inspection of Groww Invest Tech (formerly Nextbillion Technology Pvt Ltd). The Securities and Exchange Board of India (Sebi) alleged that Groww had violated multiple provisions of the securities contracts (regulation), several Sebi circulars and stock broker regulations. Among the lapses cited, the regulator observed that the applicant (Groww Invest Tech) had sent retention statement containing incorrect information to clients viz. discrepancy in financial ledger balance and margin obligation in 38 instances. The markets watchdog also flagged Groww for offering non-securities services such as UPI payments and bill payments through its trading app, which could expose users to financial liability, the order said. Further, Sebi found that Groww's Business Continuity Plan was being reviewed annually instead of the mandated half-yearly frequency. Inadequacies were also noted in the firm's surveillance framework, particularly in analysing client trades based on financial capacity and updating income details, as per the order. Thereafter, a show cause notice was issued by the regulator to Groww Invest Tech for the alleged violations on November 25, 2024. Pursuant to the receipt of the settlement application, Groww filed revised settlement terms, which was cleared by Sebi. After remitting the settlement fee of Rs 47.85 lakh, Groww settled the case with Sebi. However, Sebi has reserved the right to reopen the case if it finds that the company did not make full disclosures or breached the settlement terms. On Tuesday, Groww Invest Tech settled with markets watchdog Sebi a matter related to alleged failure to handle a technical glitch in January 2024 by paying Rs 34.12 lakh.
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Business Standard
13-05-2025
- Business
- Business Standard
Groww Invest pays over ₹34 Lakh to settle Sebi case linked to tech glitch
Groww Invest Tech has paid a Rs 34.12 lakh as settlement in a case filed in October last year, markets regulator Securities and Exchange Board of India (Sebi) said on Tuesday. The case stems from an incident on January 23, 2024, when Groww's platform suffered a glitch that prevented clients from placing trades. Following this, the company filed for a settlement with Sebi, choosing to resolve the issue 'without admitting or denying the findings of facts and conclusions of law". In its official order, Sebi confirmed that Groww Invest, which was earlier known as Nextbillion Technology, had completed the payment. Sebi stated, 'In view of the acceptance of the settlement terms and the receipt of the settlement Sebi, the instant adjudication proceedings initiated against the applicant vide SCN (show cause notice) dated October 11, 2024, are disposed of.' According to Sebi's notice, Groww, in its role as a stockbroker, failed to send critical data to the exchange through LAMA, which is a logging and monitoring system, on the day of this technical disruption. The company allegedly also did not have any backup support for its clients during the glitch period. There were reportedly no working phone lines, trading terminals, or staff available to take trading calls, which led to a complete service shutdown for all users for as long as the trading downtime persisted. Sebi noted in its adjudication proceedings that Groww's cybersecurity checks, in particular its Vulnerability Assessment and Penetration Testing (VAPT), failed to act effectively to subside any sort of issue that arose.
