SEBI Issues Warning To Nuvama Unit Over Client Pledge Process

Nuvama Wealth ManagementLtd. said its subsidiary Nuvama Wealth and Investment Ltd. received administrative warnings from the Securities and Exchange Board of India on Wednesday.

In an exchange filing late Thursday, the company said the SEBI had flagged issues following a thematic inspection of its retail broking operations. The warnings pertain to the processes for client onboarding and verification of shares pledged and invoked under the client unpaid securities pledge account.

Nuvama Wealth and Investment has been advised to exercise caution and ensure such lapses do not recur.

The company clarified that the warnings would not impact its financials, operations or any other activities.