After Indian authorities seized $15.3 million in assets tied to Pavel Prozorov, including a luxury yacht, the OctaFX majority shareholder has lost his voting rights in the firm.

The Cyprus Securities and Exchange Commission (CySEC) issued a notice today (Wednesday) seeking to reduce Prozorov's management influence over Octa Markets Cyprus Ltd.

Regulator Cuts Influence

CySEC said Prozorov’s role as ultimate beneficial owner was “prejudicial to the sound and prudent management” of Octa Markets. At its August 25 meeting, the regulator voted to suspend the exercise of his voting rights, which cover 95% of the company’s share capital.

Prozorov is also barred from serving on the board or exercising any management duties. The regulator explained in a statement that the measures were designed to end Prozorov’s influence over the Cyprus Investment Firm (CIF).

Commenting about the decision, a representative of the company told Finance Magnates: “To avoid any confusion: this decision concerns that EU-regulated entity only (Octa Markets Cyprus Ltd) and does not relate to Octa’s global operations, which are separately incorporated and not regulated by CySEC.”

“Octa Global has no governance or operational involvement in the EU entity and is therefore not in a position to comment on matters pertaining to Octa Markets Cyprus Ltd or CySEC’s order.”

Indian Investigation Looms Large

The Cyprus move follows enforcement actions in India, where authorities seized Prozorov’s assets, including a luxury yacht. India’s Directorate of Enforcement (ED) accused him and OctaFX of defrauding investors with false promises of high returns and laundering funds through mule accounts linked to shell e-commerce companies.

Indian regulators have previously fined OctaFX for operating without authorization, while Singapore also blocked access to its website earlier this year.

Expect ongoing updates as this story evolves.

Source: Finance Magnates