SEBI on Friday canceled the registration of LFS Broking
Market regulator Sebi on Friday canceled the registration of LFS Broking and barred its MD Syed Ziyajur Rahaman from engaging or being associated with any registered intermediary for five years for violating market rules.
On Friday, market regulator SEBI revoked LFS Broking’s registration and banned its managing director Syed Ziazur Rahman from participating in or being associated with any registered intermediary for five years. for violating market rules. The regulator has canceled LFS Broking’s registration as a stock broker, portfolio manager, depository participant and research analyst.
“I observe that since Notice No. 2 (Syed Ziazur Rahman) has not acted with honesty and integrity and has not displayed ethical behavior and fairness, he is desisted from being a fit and proper person in terms of Intermediary Rules,” Sebi’s 56-page order said. Full time member Kamlesh C version Dr.
Further, SEBI observed the conduct of LFS Broking, where it allowed the use of registration certificates in connivance with Rahman, to dupe investors for illegal collection of funds.
The market watchdog claims that the brokerage firm is also not meeting the criteria laid down under the Intermediary Regulations.
In its investigation, the regulator also found that LFS Broking’s SEBI registration was misused to promote LFS-PMS and another unregistered entity MOL commodities. These companies collected substantial funds from investors, which were channeled through various bank accounts operated by Rahman.
Specifically, Rahman’s accounts saw transactions totaling Rs 9.3 crore, including transfers to trading accounts owned by LFS Broking.
Sebi noted that Rs 266 crore was collected by LFS-PMS from 6,219 clients, many of whom had never traded in the securities market.
Additionally, LFS-PMS and MOL Commodity accounts, holding funds from numerous investors, show significant financial activity without proper contracts or regulatory approvals.
The order came after SEBI received some complaints that LFS Broking and PMS Services (LFS-PMS), a firm owned by Rahman, was running an investment scheme, guaranteeing returns and running it as a legitimate business under the guise of registration. By the regulator in the brokerage house.
The present proceedings arise out of the inquiry report dated September 20, 2023, in which the Designating Authority (DA) recommended cancellation of registration granted to LFS Broking in multiple capacities. recommended that Rahman should be banned from being a registered intermediary for five years. .
Lfs & Pms
Lfs pms service
SEBI
Welcome to TechnicalSofi, your premier destination for insightful news and updates across a diverse range of topics! I’m Sapikul Ali, an engineering graduate based in West Bengal, and the founder and lead author of this blog. Driven by a passion for staying informed and sharing knowledge, I cover a wide spectrum of subjects, including local news, technology, health, finance, lifestyle, and entertainment.
My goal is to deliver accurate, engaging, and easy-to-understand content that resonates with readers from all walks of life. When I’m not writing, you can find me on Twitter @technicalsofii or connect with me on Facebook @sofismart.trick.9.
I’m excited to share my insights and perspectives with you, and I look forward to connecting with like-minded individuals who share my passion for learning and growth.”
