Market regulator Sebi has cancelled the registration of Amit Financial Services as stock broker. Amit Financial Services has ceased to be a member of the National Stock Exchange.
In an order dated November 5, Sebi said that the certificate of registration granted to a stock broker may be cancelled "in case of cancellation of membership of the stock broker by the concerned stock exchange".
"... hereby cancel the certificate of registration of the noticee, Amit Financial Services Private Limited," Sebi said.
As per a list provided to Sebi by NSE, Amit Financial Services had been declared a defaulter with effect from December 9, 1996.
Thereafter, Sebi had initiated proceedings against Amit Financial Services in February 26, 2004. On completion of the proceedings the enquiry officer submitted his report recommending the cancellation of certificate of registration granted to the stock broker.
As per the norms, the certificate of registration granted to a stock broker is subject to conditions that he holds membership of any stock exchange and he shall abide by the rules of the bourse of which he is a member. "As the noticee (Amit Financial Services) has ceased to be a trading member of NSE and has not been re-admitted as its member, the very foundation on which Sebi had granted registration to the noticee as a stock broker is not in existence," Sebi said.