Sebi has barred Orion Capital and Debt Market, Orion Broking Services India as well as their partners from securities markets for failing to redress "numerous" investor grievances.
The nature of investor complaints received against both the firms are predominantly on non-settlement of the funds and securities and balances due to their clients.
"In both the cases, several hundred complaints have been received against each of them and the claim amount is more than Rs 6 crore against Orion Capital and over Rs 4 crore against Orion Broking," Securities and Exchange Board of India (Sebi) said.
The firms failed "to redress numerous investor grievances pertaining to non-receipt of funds or securities."
None of the claims have been settled by the entities so far, it added.
"I also note that there are arbitration awards passed against both Orion Capital and Orion Broking and none of the awards have been implemented by the said entities," Sebi Whole Time Member Rajeev Agarwal said in an interim order.
By indulging in such activities, the two firms and their partners have failed to act in accordance with the requirements of the Stock Brokers Regulations.
Accordingly, Sebi has restrained Orion Capital and Orion Broking Services, Johnson P Jose, Cinzy Johnson and Joseph P C from the securities markets till further directions.
They have been directed "to cease and desist from undertaking any activity in the securities market." Besides, they have been barred from disposing of any assets without regulatory approval.
