Groww Invest Tech Settles Regulatory Violation Case with Sebi

Groww Invest Tech has resolved a legal dispute with the Securities and Exchange Board of India (Sebi) involving alleged violations of stock broker rules. The matter was settled after the online investing platform paid a settlement fee of Rs 47.85 lakh. The resolution follows an in-depth investigation by Sebi.

In a recent development, Groww Invest Tech has concluded a case involving alleged breaches of stock brokerage regulations, after the company agreed to pay a settlement sum of Rs 47.85 lakh. This settlement came post an application Groww filed with Sebi, acknowledging the case without admitting or denying the alleged infractions.

The case originated from a thorough examination by the Securities and Exchange Board of India (Sebi), which found that Groww had contravened various securities contracts regulations and failed to adhere to Sebi circulars and stock broker guidelines. Key issues included inaccuracies in client financial reports and offering non-securities services like UPI and bill payments through its trading interface.

Problems were also noted in the regularity of Groww's Business Continuity Plan reviews and its surveillance strategies. After discussions, the settlement was accepted by Sebi, while they retain the right to reopen the case if full disclosure was not maintained. This is the second resolution announced this week, with Groww also settling another case involving a technical issue in January 2024 for Rs 34.12 lakh.

(With inputs from agencies.)