Sebi (Securities and Exchange Board of India) on Monday cancelled the registration of 11 depository participants, including Karvy Stock Broking Ltd. In a separate order, the market regulator has also cancelled the registration certificate of four other stock brokers

Irrespective of the cancellation of certificate of registration, the respective brokers and depository participants will continue to be liable for anything done or omitted to be done by them as depository participant and continue to be responsible for payment of outstanding fees and dues and interest if any, due to Sebi.

Sebi said the directions will come into force with immediate effect. The four stock brokers whose registrations were cancelled include KSBL Securities, Conard Securities, Anee Securities and Credential Stock Brokers.

Apart from Karvy Stock Broking and Anugrah Stock & Broking, the entities whose registration has been cancelled as depository participants are -- Wellindia Securities, BRH Wealth Kreators, Fairwealth Securities, Vrise Securities, MK Chandan Broking (RTG Share Broking), KSBL Securities, Vineet Securities, Anee Securities, Sumpoorna Portfolio.

The main purpose of cancellation of certificate of registration, as depository participant is to prevent the misuse of their registration with Sebi, without being a participant of a depository, on unaware investors, Sebi said

Thus, the brokers and depository participants will continue to be liable for any action initiated or to be initiated as if their registration has not been cancelled and this order does not absolve them from any violation of the securities laws committed by them as registered depository participants.

The exchanges have informed Sebi that brokers were expelled from their membership by them and the same has been communicated to them, the order mentioned. The four entities have ceased to satisfy the conditions of registration stipulated under broker regulation, Sebi said.

The registration of depository participants was cancelled after depositories informed Sebi that the agreements between the depositories and 11 entities were terminated by them and the same has been communicated to them.