Investors demand action against BMA Wealth, to protest outside

Clients of suspended brokerage firm BMA Wealth Creators Ltd, recently rechristened as BRH Wealth Kreators, on Tuesday said they will demonstrate outside the Sebi office here, demanding prompt action by the market regulator to resolve their grievances.

Clamping down on irregularities, Securities Exchange Board of India (Sebi) had barred the stock broker which faces an allegation of diversion of client securities worth Rs 100 crore by the promoters.

National Stock Exchange had also suspended the Kolkata-based broking firm in October.

"We have decided to protest outside the Kolkata Sebi office on Wednesday. The Karvy scam surfaced later but Sebi resolved the investors' grievances by returning the stocks lying with the broker's DP account, but in our case it (regulator) is silent," a former employee of the brokerage firm and an investor, Anirban Dasgupta told PTI.

On Monday, 50 odd clients of the brokerage firm held a demonstration outside the Mumbai office of Sebi, alleging "slow course of action" by the market regulator to resolve their grievances.

"We estimate the magnitude of the scam will be between Rs 300-400 crore," said Dasgupta who was engaged with the broking firm for the last 10 years.

Another investor and former employee of the firm, Prasun Majumdar alleged, "Around 40,000 investors have been affected due to the irregularities of the firm and no action against the culprits was taken by the regulator."
In a message to its investors the broking firm had recently said, "You all are aware of the present ongoing precarious situation, but we want to assure each of you that even though this is troubled time for all of us, but you should not lose hope as we are doing everything to ensure that your money is secured and in due course you receive your payment."