Markets regulator Sebi on Friday cancelled the registration of LFS Broking and barred its MD Saiyad Jiyajur Rahaman from being employed or associated with any registered intermediary for five years for violating market norms.
The regulator also cancelled the registrations of LFS Broking as a stockbroker, portfolio manager, depository participant, and research analyst.
"I note that since the Noticee No. 2 (Saiyad Jiyajur Rahaman) has not acted with integrity, and honesty and has not displayed ethical behaviour and fairness, he ceases to be a fit and proper person in terms of the Intermediaries Regulations," Sebi's Whole time member Kamlesh C Varshney said in the 56-page order.
Further, Sebi observed the conduct of LFS Broking, where it allowed to use the registration certificates in collusion with Rahman, to deceive investors for the illegal mobilisation of funds.
The markets watchdog holds that the brokerage firm is also not satisfying the criteria prescribed under the Intermediari
