Networth Direct aka Monarch Networth capital suspended for 1 month
Fellow traders & investors,
Networth Stock Broking Ltd., (New Name: Monarch Networth Capital Limited) has been suspended from trading for a period of one month on charges of participating in “Circular Trading”, a manipulative trading practice, between 1st of August 2002 and 16th of October 2002 and in doing so driving the price of G. G. Automotive Gears Limited from Rs.23 to Rs. 115.30 in the 38 day period.
Networth’s broking license was suspended for a period of one month by SEBI in April of 2011. But the order was overturned by a Special Appellate Tribunal(SAT). On further appeals from the regulator, and a Supreme Court order dated 20th May 2016, Networth, now Monarch Networth Capital Limited has been asked to cease all trading on exchanges for a period of one month starting 21st May 2016.
Check this link from BSE for more.
Our view on what should you do?
The balance sheet of the company seems to be in an okay shape. PAT of Rs 3 crores for FY 14/15. But still if you are a client you would not be able to take a trade with them from monday. It is best advised to move your business from this brokerage to another firm. You can use our portal Comparbrokerages to decide.
Empowering Indian retail investors/traders,