HDFC Securities confirms closure of franchisee business, denies compliance concerns

HDFC Securities, the wholly owned stockbroking subsidiary of HDFC Bank, has confirmed that it has decided to close its franchisee business, while denying any compliance issues. The firm clarified that the decision was initiated earlier this year as a strategic step to streamline operations and enhance service quality, and not due to compliance issues as suggested in rumours circulating on WhatsApp and social media.

"We are aware of inaccurate messages circulating on WhatsApp and social media that suggest HDFC Securities is closing its franchisee business due to compliance issues," the company said.

"We want to clarify that our decision to pause partnerships was a strategic move made earlier this year to streamline operations and enhance service quality rather than being related to compliance concerns," it added.

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