Groww Invest Settles with SEBI over Technical Glitch Incident

Groww Invest Tech resolved its case with SEBI concerning a technical glitch by paying Rs 34.12 lakh. The broking firm opted for a settlement without admitting guilt. SEBI's allegations included failure to publish data, lack of resources during the glitch, and ineffective security measures.

Groww Invest Tech has settled a case with the Securities and Exchange Board of India (SEBI), stemming from a technical glitch that occurred in January 2024. The resolution involved a payment of Rs 34.12 lakh after the firm chose to settle without admitting or denying the allegations.

The SEBI order reveals that the broking firm allegedly failed to handle a critical technical failure effectively. Key accusations included not publishing essential data to the exchange and lacking necessary resources such as telephone lines and trading terminals during the disruption.

The technical issues allegedly led to a complete service denial to Groww's clients. SEBI also noted that Groww's Vulnerability Assessment and Penetration Testing (VAPT) process was ineffective, which contributed to their regulatory norms violation leading to adjudication proceedings.

(With inputs from agencies.)