CySEC Suspends Voting Rights of Octa Markets' Majority Shareholder

On September 3, the Cyprus Securities and Exchange Commission (CySEC) announced the suspension of voting rights for Octa's majority shareholder.

The Cypriot regulator stated that at a meeting held on August 25, CySEC believed that the influence of Pavel Prozorov as the ultimate beneficial owner was detrimental to the “sound and prudent management” of Octa Markets Cyprus Ltd. Therefore, it decided to suspend the shareholder's voting rights pursuant to Article 11(3) of the Investment Services and Activities and Regulated Markets Law.

Meanwhile, the regulator prohibited Prozorov from serving on the company's board of directors or performing any management duties.

Prozorov holds a 95% stake in Octa Markets Cyprus Ltd.

Previously, India's Enforcement Directorate accused Octa and Prozorov of defrauding investors with false return promises and seized assets worth approximately $15.3 million belonging to Prozorov.

Recently, the Securities and Exchange Board of India (SEBI) reached a settlement with Tauga Private Limited, formerly known as OctaFX India. Tauga Private neither admitted nor denied the findings of the Indian authorities but agreed to pay ₹3.2 million to resolve charges related to unauthorized financial services in India.

BrokersView reminds you

The Cyprus Securities and Exchange Commission (CySEC) serves as the financial regulatory authority in Cyprus. As a member of the European Union, Cyprus aligns its financial regulatory framework with the EU’s Markets in Financial Instruments Directive (MiFID).

CySEC has been active in the forex market since 2001. Click here to find more forex brokers regulated by CySEC.