Anand Rathi Share And Stock Brokers Appoints Ernst & Young LLP For Forensic Audit
Anand Rathi Share and Stock Brokers Limited appointed Ernst & Young LLP to conduct comprehensive forensic audit after discovering fraudulent activities worth approximately Rs. 13 crores in its depository operations. The fraud involved off-market transfers from a Pune-based client's Demat account, with the company ensuring full regulatory compliance through proper disclosures to stock exchanges.
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Anand Rathi Share and Stock Brokers Limited has appointed Ernst & Young LLP (EY) to conduct a comprehensive forensic audit following the discovery of significant fraudulent activities in its depository operations. The company made this announcement to BSE Limited and National Stock Exchange of India Ltd. on March 06, 2026, in compliance with SEBI regulations.
Forensic Audit Details
The forensic audit engagement was formalized through a letter signed on March 06, 2026, with Ernst & Young LLP taking the lead role in conducting the investigation. This appointment follows the company's earlier intimation dated February 06, 2026, where it first disclosed the fraudulent activities.
| Parameter: | Details |
|---|---|
| Audit Firm: | Ernst & Young LLP (EY) |
| Engagement Date: | March 06, 2026 |
| Reference Letter: | February 06, 2026 |
| Regulatory Framework: | SEBI Listing Regulations 30 and 51 |
Nature of Fraudulent Activities
The forensic audit aims to independently examine serious offences identified in the company's depository activities. The investigation focuses on multiple criminal activities that have been uncovered in the company's operations.
The identified offences include:
- Fraud and cheating
- Fabrication of documents and electronic records
- Other related offences in depository activities
Important Note: The fraudulent activities are specifically limited to depository operations and do not involve the company's broking activities.
Financial Impact and Client Details
The fraudulent scheme involved off-market transfers of shares from a client's Demat account, resulting in significant financial exposure for the company.
| Impact Details: | Specifications |
|---|---|
| Total Amount: | Approximately Rs. 13 crores |
| Client Location: | Pune-based |
| Transaction Type: | Off-market share transfers |
| Assessment Date: | As on February 06, 2026 |
Regulatory Compliance
Anand Rathi Share and Stock Brokers Limited has ensured full compliance with regulatory requirements by informing both major stock exchanges. The company has also uploaded the relevant information on its official website at https://anandrathi.com/investors for stakeholder access and transparency.
The disclosure was made pursuant to Regulations 30 and 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and in accordance with the SEBI Master Circular dated January 30, 2026. Company Secretary and Compliance Officer Chetan Prajapati signed the official communication, ensuring proper corporate governance protocols were followed.
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