Groww Invest Tech Resolves Regulatory Issues with Sebi
On May 14, 2025, Groww Invest Tech announced the settlement of a regulatory case with the Securities and Exchange Board of India (Sebi) by paying a fee of ₹47.85 lakh. This step addresses allegations of non-compliance with stock broker regulations.
Background of the Case
The situation arose from an extensive inspection of Groww Invest Tech, previously known as Nextbillion Technology Pvt Ltd. Sebi’s regulatory framework was reportedly violated in several respects, leading to the issuance of a show-cause notice dated November 25, 2024.
Key Allegations
- Incorrect Client Information: Groww was accused of sending out retention statements with discrepancies concerning client financial ledgers and margin obligations in 38 instances.
- Unauthorized Services: The platform was found to be offering non-securities services, including UPI payments and bill payments, which could potentially expose its users to financial risks.
- Business Continuity Plan Issues: Sebi pointed out that Groww’s Business Continuity Plan had not been reviewed according to the required half-yearly schedule but rather annually.
- Surveillance Framework Gaps: The firm did not adequately analyze customer trades in relation to their financial capacity, nor did it regularly update income details, as mandated by regulatory guidelines.
Settlement Conditions
In light of these findings, Groww filed a settlement application with Sebi, which it submitted without admitting or denying any claims. Following the payment of the settlement amount, Sebi’s Adjudicating Officer, Amit Kapoor, stated, “In view of the acceptance of the settlement terms, the adjudication proceedings initiated against applicant… is disposed of.”
Future Implications
While this settlement concludes the current case, Sebi reserves the right to reopen the matter if Groww fails to meet its obligations or makes inaccurate disclosures in the future.
Recent Similar Settlements
This isn’t Groww Invest Tech’s only encounter with regulatory challenges. Shortly before this agreement, the company settled a separate matter with Sebi regarding a technical glitch that occurred in January 2024, resulting in a payment of ₹34.12 lakh.
