MUMBAI: IndiaNivesh Shares and Securities (INSSPL) has shut down its broking business due to a liquidity crunch amid the lockdown and a major stock market meltdown.
Over the weekend, the company had shut down its PMS unit.The ongoing global pandemic called the Novel Coronavirus (Covid-19) coupled with the present lockdown has led to an unprecedented fall in the markets, IndiaNivesh, the brokerages parent firm said in a stock exchange filing.
This has brought economic activity to a grinding halt.
These extraordinary events have exacerbated an economic slowdown and led to an unprecedented and unanticipated liquidity crunch, it said.The broking firm said it has managed to fulfil its settlement obligations during this period even as the situation compounded owing to the present lockdown and the credit freeze in the market.
It said due to the ongoing situation, the company was not being able to raise funds from financial institutions or banks.In the above mentioned circumstances, INSSPL has decided to disable all the services relating to stock broking (voluntary disablement), the broking firm said.Accordingly, INSSPL will neither solicit any new clients nor take any fresh orders/transactions or positions with its existing clients, it added.Ahead of the announcement, IndiaNivesh shares closed 0.14 per cent higher at Rs 36.45 apiece on BSE.