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IndiaNivesh shutters brokerage business

Mumbai: Mumbai-based brokerage IndiaNivesh Shares and Securities has announced shutting down its stock and commodity broking products and services with quick impact citing “remarkable and unanticipated” liquidity crunch because of the outbreak of Covid-19 and the resultant lockdown.

The brokerage mentioned in a late night time remark on Wednesday that it'll not take any new purchasers or contemporary orders with present purchasers.

The 14-year brokerage has turn into the primary casualty of the turmoil within the stock marketplace during the last 40 days brought about through the worldwide pandemic. The company has close down its PMS industry called IndiaNivesh Small Cap (Sprout) closing week.

“Due to the continued international pandemic, coupled with the prevailing lockdown in India, has led to an remarkable fall within the markets and has introduced grinding halt to the industrial activity,” mentioned the brokerage company.

“These atypical events have exacerbated an economic slowdown and led to an remarkable and unanticipated liquidity crunch,because of which, the company is unable to lift price range from financial institutions and banks, led to unfavourable scenario.”

The brokerage has requested the National Clearing Corporation and Indian Clearing Corporation to freeze all its collateral to be had with the exchanges and its clearing member Edelweiss Custodial Services for settling the credit steadiness of the purchasers.

For the nine months ended December 2019, IndiaNivesh posted a loss of Rs 7.15 crore compared to Rs 5.03 crore loss in the same period closing 12 months. The company’s borrowings have greater from Rs 136 crore in March 2016 crore to Rs 828 crore in September 2019.

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