Groww Invest Tech Allegedly Lack Of Adequate Infrastructure To Handle Technical Glitches; Settles SEBI Proceedings with Rs. 34.12 Lakh
Groww Invest Tech Allegedly Lack Of Adequate Infrastructure To Handle Technical Glitches; Settles SEBI Proceedings with Rs. 34.12 Lakh
Groww Invest Tech Private Limited, formerly known as Nextbillion Technology Private Limited, has settled ongoing adjudication proceedings initiated by the Securities and Exchange Board of India (SEBI) by agreeing to pay ₹34.12 lakh under a settlement arrangement.
SEBI had initiated action against the company for alleged violations of multiple regulatory provisions, including failure to publish required data on the LAMA platform, lack of adequate infrastructure to handle technical glitches—resulting in denial of service to clients—and deficiencies in its Vulnerability Assessment and Penetration Testing (VAPT) process.
The adjudicating officer appointed in the case, Amit Kapoor, cited several circulars and compliance requirements that Groww allegedly failed to adhere to, as detailed in a Show Cause Notice issued on October 11, 2024.
Following the issuance of the notice, Groww submitted a settlement application on November 30, 2024, under SEBI's Settlement Regulations. After discussions with SEBI’s Internal Committee and a review by the High Powered Advisory Committee (HPAC), the settlement terms were finalized.
On May 2, 2025, the Panel of Whole Time Members of SEBI approved the HPAC’s recommendation. Groww confirmed payment of the ₹34.12 lakh settlement amount via email on May 6, 2025, which SEBI has acknowledged.
As a result, the adjudication proceedings have been formally disposed of. However, SEBI has retained the right to revive or initiate proceedings if it is later found that Groww did not fully disclose relevant information or violated the terms of the settlement.
The settlement order, issued on May 13, 2025, marks the formal closure of this case—although Groww remains under watch for potential future compliance issues.
Case Details
Applicant Name : Groww Invest Tech Private Limited
Settlement Order No. SO/AK/DS/2025-26/8251
Date: May 13, 2025
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Mariya is the Senior Editor at JurisHour. She has 5+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started as a freelance tax reporter in the leading online legal news companies like LiveLaw & Taxscan.
