SEBI Issues Settlement Order in Groww Invest Tech Inspection Case

Image Source: Fortune India

India’s markets regulator, the Securities and Exchange Board of India (SEBI), has issued a settlement order in the case concerning Groww Invest Tech (formerly Nextbillion Technology) following an inspection related to a major technical glitch on January 23, 2024.

Key Highlights:

Groww Invest Tech faced a significant platform outage on January 23, 2024, which left customers unable to trade for several hours during market hours.
SEBI’s inspection found that Groww, as a stockbroker, failed to transmit critical data to the exchange via the mandated Log Analytics and Monitoring Application (LAMA) system during the glitch.
The regulator also noted that Groww lacked adequate backup arrangements for clients during the disruption-there were no working phone lines, trading terminals, or staff available to handle trading calls, resulting in a complete service shutdown.
SEBI’s proceedings highlighted deficiencies in Groww’s cybersecurity protocols, specifically the ineffectiveness of its Vulnerability Assessment and Penetration Testing (VAPT) processes.
In response to SEBI’s show cause notice issued in October 2024, Groww applied for settlement without admitting or denying the findings.
SEBI approved the settlement after Groww paid ₹34.12 lakh, bringing the adjudication proceedings to a close.

The settlement order, issued on May 13, 2025, formally disposes of the case, marking the conclusion of regulatory action in this matter.

This case underscores SEBI’s focus on robust operational continuity and cybersecurity standards for market intermediaries, especially in the context of rapidly growing digital trading platforms.

Source: SEBI, Business Standard, The Week, NDTV Profit, Inc42, Moneylife