Description

NSE has expelled 4A Securities Limited (SEBI Reg: INZ000246535) from its membership and declared it a defaulter with immediate effect under NSEIL Rules and Byelaws.

Summary

NSE has expelled 4A Securities Limited (SEBI Registration No. INZ000246535) from its membership and declared it a defaulter with immediate effect. The action is taken under Rules 1 and 2 of Chapter IV of NSEIL Rules and Byelaw 1(a) of Chapter XII of the NSEIL Byelaws. All trading members are required to comply with applicable provisions in their dealings with this entity.

Key Points

  • 4A Securities Limited (SEBI Reg: INZ000246535) has been expelled from NSE membership and declared a defaulter with immediate effect.
  • Five directors are identified in Annexure A, three of whom (Arvind Kumar Srivastava, Kapil Kumar, Mohammad Naeem) remain active with no resignation date on record.
  • One Authorized Person, Sneha Lalwani (AP Code: AP2825000171, Segments: CM, F&O), is henceforth not authorized to deal in that capacity.
  • Sub-rule 4(A) & 5 under Rule 8 of SCRR 1957 disqualifies the listed directors from holding Director/Partner positions in any future exchange member firm.

Regulatory Changes

No new regulatory framework is introduced. The action is executed under existing provisions:

  • Rules 1 & 2, Chapter IV, NSEIL Rules — governing expulsion of members.
  • Byelaw 1(a), Chapter XII, NSEIL Byelaws — governing defaulter declarations.
  • Rule 8, Sub-rules 4(A) & 5, SCRR 1957 — disqualification of directors of defaulting/expelled members from future exchange membership roles.

Compliance Requirements

  • All NSE trading members must comply with Chapter IV of NSEIL Rules and Chapter XII of NSEIL Byelaws regarding transactions with 4A Securities Limited.
  • Members and investors must take note of the expulsion and defaulter status.
  • The Authorized Person Sneha Lalwani must not be treated as authorized to deal in any capacity going forward.
  • Directors listed in Annexure A are disqualified from holding Director/Partner roles in any exchange member firm per SCRR 1957.

Important Dates

  • April 02, 2026: Effective date of expulsion and defaulter declaration (immediate effect).
  • Director appointment/resignation dates (Annexure A):
    • Shyoraj Singh Bhati: Appointed 19/06/2017, Resigned 03/06/2024
    • Kundan Menda: Appointed 28/12/2015, Resigned 12/11/2021
    • Arvind Kumar Srivastava: Appointed 28/10/2011, No resignation on record
    • Kapil Kumar: Appointed 06/07/2018 (MCA records), No resignation on record
    • Mohammad Naeem: Appointed 12/11/2021 (MCA records), No resignation on record

Impact Assessment

For Market Participants: All outstanding or pending transactions with 4A Securities Limited must be handled in accordance with NSEIL defaulter provisions. Counterparties should review their exposure immediately.

For Directors: Three currently active directors (Arvind Kumar Srivastava, Kapil Kumar, Mohammad Naeem) face permanent disqualification from directorship or partnership in any NSE member firm under SCRR 1957.

For Clients of 4A Securities Limited: Clients should contact NSE or their new broker to transfer holdings and ensure continuity of trading access, as the firm is no longer an authorized trading member.

For Authorized Persons: Sneha Lalwani (AP2825000171) is immediately stripped of authorization across Cash Market (CM) and Futures & Options (F&O) segments.

Impact Justification

Expulsion and defaulter declaration of a trading member has immediate market-wide implications, disqualifies associated directors from future roles, and deauthorizes affiliated Authorized Persons.