SEBI v. BRH Wealth Kreators Ltd and others (broker diversion of client securities and funds, 2023)

Judgment entered

Checked against the primary document on October 9, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, in a single reading of the order; an independent second reading of 60 SEBI records agreed on every field for 56, the four misses being penalty amounts; a later sample of 50 of the SEBI records added on 9 October agreed on every field for 46. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.

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In January 2023 a SEBI whole time member barred the stockbroker BRH Wealth Kreators, its commodities arm and its director for seven years and five related companies for five years, and fined them a combined Rs 11.5 crore, for pledging client securities and diverting the proceeds to related parties. Refund of client money and securities was ordered.

The record

Structured fields for this action, as recorded in our case library.
Agency	SEBI (India)
Date filed	2023-01-11
Date resolved	2023-01-11
Court	SEBI Whole Time Member
Status	judgment
Asset class	equities
Instruments	clients' funds and securities held by a stockbroker
Venue	NSE, BSE, MCX, NCDEX
Criminal parallel	No
Bars imposed	Broker group and its director restrained from the securities market for 7 years, Five related parties restrained for 5 years, Refund of client money and securities ordered under NSE supervision
Defendants	BRH Wealth Kreators Ltd (entity) ; BRH Commodities Pvt Ltd (entity) ; Anubhav Bhatter (individual) ; Shiv Kumar Damani (individual) ; Mrugesh Devashrayi (individual) ; Asit Kumar Ghosh (individual) ; Prosperous Vyapaar Pvt Ltd (entity) ; Polo-Setco Tie Up Pvt Ltd (entity) ; Parton Commercial Pvt Ltd (entity) ; AB Investments (entity) ; Bluesnow Supplier Pvt Ltd (entity)
Techniques

What was ordered

Civil penalty: —
Disgorgement: —
Prejudgment interest: —
Total relief: —
Alleged gain: —
Penalty as published: 115m INR

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars. This regulator states penalties in INR. The figure is recorded as published and is not converted, so it does not appear in the USD totals or medians used elsewhere on this site.

What is alleged to have happened

This order of 11 January 2023 was made by SEBI whole time member Ashwani Bhatia. The lead noticee is BRH Wealth Kreators Ltd (formerly BMA Wealth Creators), a stockbroker that was a member of NSE and BSE, with BRH Commodities Pvt Ltd on MCX and NCDEX, their director Anubhav Bhatter, three other individuals and five related companies. SEBI had passed an ex parte interim order in October 2019, confirmed in January 2020, and this is the final order after a forensic audit by NSE covering April 2016 to September 2019.

The show cause notice of 29 October 2021 alleged misuse of clients' securities by pledging them, diversion of funds raised through loans against those securities, misuse of client funds, and transfers to related parties, together with data, grievance and co-operation failures. According to the order, three lenders alone disbursed Rs 513 crore of such loans in the audit period. On two sample dates it found Rs 45 crore and Rs 107 crore of securities of credit-balance clients pledged, and of the loans 23 transfers worth Rs 150.13 crore went to seven related parties, including Rs 80.61 crore to Polo-Setco and Rs 50.67 crore to Parton Commercial. Other related companies received outflows beyond what they were owed.

The whole time member held the conduct to be fraud under the PFUTP Regulations and a failure to segregate client assets. He restrained the broker, its commodities arm and Mr Bhatter for seven years and five related companies for five years, with the interim restraint counted towards those periods. He fined the two broker entities Rs 5 crore each under section 15HA and section 23D of the Securities Contracts (Regulation) Act, Mr Bhatter Rs 1 crore, and the five related companies Rs 10 lakh each, which sums to Rs 11.5 crore. Three other individuals were not fined and their interim restraints were lifted, as they had already been barred for over three years.

The three main noticees were made jointly and severally liable to refund client money and return client securities, with NSE supervising a sale of their assets and the Defaulters Committee holding the proceeds. Their assets were frozen until then.

The record does not show how much clients recovered, whether the order was appealed, or any criminal case.

No library technique matches broker misuse of client assets, so the technique list is empty.

This library tags the matter with no technique and records it as broker fraud on clients. The tagging is ours, not the regulator's.

For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the order.

Timeline

2023-01-11 SEBI order

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

The linked release is published by the issuing regulator under its own terms. Our summary and narrative above are our own writing.

Record added October 8, 2026. submit a correction.