Mumbai-based brokerage IndiaNivesh Shares and Securities Private Limited (INSSPL) has shut its broking business after the company was not able to raise funds from financial institutions and banks.
The company said it has seen many peak and valleys in the market and been in brokerage business for more than 14 years.
The firm expressed concerns over the ongoing global pandemic Novel Coronavirus [COVID-19] which has led to an unprecedented fall in the markets coupled with the present lockdown.
IndiaNivesh, the brokerage's parent firm said in a stock exchange filing that this has brought a grinding halt to the economic activity and led to an unprecedented and unanticipated liquidity crunch. The statement added that the situation has been compounded due to the present lockdown and the credit freeze in the market and due to the same, the company is unable to raise funds from financial institutions / Banks and thus the situation has become unfavourable.
"In light of the above mentioned circumstances, INSSPL has decided to disable all the services relating to stock broking (voluntary disablement)," the statement said.
"Accordingly, INSSPL will neither solicit any new clients nor take any fresh orders/transactions or positions with its existing clients" it added.
The broking firm also added that it has managed to fulfil its settlement obligations during this period.
Earlier on March 30, company's portfolio management services (PMS) unit, IndiaNivesh Investment Managers had become one of the first casualties of the current market meltdown after it decided to close its operations on account of the ongoing COVID-19 crisis.
"IndiaNivesh Investment Managers ... has decided to close its current strategy which is Small Cap (Sprout) due to recent market turmoil and difficult economic circumstances due to ongoing COVID-19 issues," IndiaNivesh had said in a statement on Sunday.
On March 24, 2020, Prime Minister Narendra Modi announced a 21-day lockdown to break the cycle of Coronavirus and curb its spread across the country.