The National Stock Exchange (NSE) has expelled crisis-hit Anugrah Stock & Broking Pvt Ltd (KSBL) from its membership, while declaring the brokerage as defaulter. NSE’s earlier investigation found that Anugrah was running an unauthorised derivatives advisory service (DAS) through an associate firm called Om Shri Sai Investments (OSSI) since 2017. Between its associates Teji Mandi Analytics, and Om Shri Sai Investments as well as its own direct clients and fund raising, Anugrah Stock & Broking had operations of over Rs1,000 crore.
In a circular, NSE says, "...the member has been expelled from the membership of the Exchange under Rules 1 and 2 of the NSEIL Rules and has been declared as defaulter under provision 1(a) of chapter XII of Exchange bye laws from 26 November 2020 after close of marker hours."
Earlier on 4th September, the NSE had withdrawn all trading rights of crisis-hit Anugrah Stock and Broking for being unable to meet settlement obligations. Before that on 1st September, the stock exchange had withdrawn Anugrah's trading rights in future & options (F&O), currency derivatives and commodity derivatives segment. Anugrah and its associates had raised Rs1,300 crore in what appeared to be a Ponzi scheme, claiming high returns from derivatives trades.
Anugrah Stock and Broking, which won a reprieve from Securities Appellate Tribunal (SAT) on 17th August, was unable to deposit Rs165 crore with the NSE by 1st September. The Exchange then had withdrawn its trading rights and also seized its computers and books, the brokerage firm has told investors thronging to its office.
The bulk of investors in Anugrah has come through an associate firm called Teji Mandi Analytics, which was apparently running a derivatives portfolio of over Rs1,000 crore like a Ponzi scheme with assured monthly returns.