SEBI Cracks Down on LFS Broking, Bars MD Syed Rahaman for 5 Years

The Securities and Exchange Board of India (SEBI) has cancelled the registration of LFS Broking and barred its MD Saiyad Jiyajur Rahaman for five years over market violations. SEBI's probe revealed misuse of registration certificates for illegal fund mobilization and significant financial discrepancies involving unregistered entities.

The Securities and Exchange Board of India (SEBI) has taken stringent action against LFS Broking, cancelling its registration and barring Managing Director Saiyad Jiyajur Rahaman from the securities market for five years. The move follows SEBI's probe which exposed significant regulatory violations, including the misuse of registration certificates to deceive investors.

Specifically, LFS Broking was found using its SEBI registration to facilitate unregistered entities like LFS-PMS and MOL Commodities in mobilizing substantial funds—reported to be Rs 266 crore from 6,219 clients—often without proper trading activities or regulatory compliance. These funds were channeled through various accounts managed by Rahaman, highlighting fraudulent activities.

SEBI's order emphasized that both LFS Broking and Rahaman failed to act with the required integrity, failing to meet the 'fit and proper' criteria for registered intermediaries. This significant regulatory intervention aims to protect investors and maintain market integrity.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)