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    IndiaNivesh shutters brokerage business

    Synopsis

    The 14-year brokerage has become the first casualty of the turmoil in the stock market over the past 40 days triggered by the global pandemic. The firm has shut down its PMS business called IndiaNivesh Small Cap (Sprout) last week.

    Brokerage RadarGetty Images
    The brokerage has asked the National Clearing Corporation and Indian Clearing Corporation to freeze all its collateral available with the exchanges and its clearing member Edelweiss Custodial Services for settling the credit balance of the clients.
    Mumbai: Mumbai-based brokerage IndiaNivesh Shares and Securities has announced shutting down its stock and commodity broking services with immediate effect citing “unprecedented and unanticipated” liquidity crunch due to the outbreak of Covid-19 and the consequent lockdown.


    The brokerage said in a late night statement on Wednesday that it will not take any new clients or fresh orders with existing clients.

    The 14-year brokerage has become the first casualty of the turmoil in the stock market over the past 40 days triggered by the global pandemic. The firm has shut down its PMS business called IndiaNivesh Small Cap (Sprout) last week.

    “Due to the ongoing global pandemic, coupled with the present lockdown in India, has led to an unprecedented fall in the markets and has brought grinding halt to the economic activity,” said the brokerage firm.

    “These extraordinary events have exacerbated an economic slowdown and led to an unprecedented and unanticipated liquidity crunch,due to which, the firm is unable to raise funds from financial institutions and banks, resulted in unfavourable situation.”

    The brokerage has asked the National Clearing Corporation and Indian Clearing Corporation to freeze all its collateral available with the exchanges and its clearing member Edelweiss Custodial Services for settling the credit balance of the clients.

    For the nine months ended December 2019, IndiaNivesh posted a loss of Rs 7.15 crore compared to Rs 5.03 crore loss in the same period last year. The company’s borrowings have increased from Rs 136 crore in March 2016 crore to Rs 828 crore in September 2019.




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    (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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