In the matter of Summary Proceedings against the Brokers who defaulted in Payment of Registration Fees
- Order No.WTM/MSS/MIRSD/31/2009
Ratio decidendi
The rule this decision rests on
Proceedings initiated against a stock broker abate and are disposed of as infructuous where the broker is no longer alive, because the penalty and enquiry process cannot continue against a deceased person. Where enquiry proceedings were initiated under regulations since repealed, the authority may dispose of those pending proceedings under the power conferred by Section 19 of the SEBI Act, 1992 read with Regulation 33B(5) and (6) of the SEBI (Intermediaries) Regulations, 2008, which replaced the earlier regulations.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
1. Vide Order dated August 11, 2005 under Regulation 16(1) of the extant SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002, SEBI had appointed officers to conduct summary proceedings, interalia, against the following 12 stock brokers who had defaulted in the payment of registration fees:
SL. NAME OF BROKER REGN NO. STOCK NO. EXCHANGE 1 Nitin Bansilal Chokshi INB020117215 Ahmedabad 2 Jagdish Panalal Gandhi INB010009714 BSE 3 Radheshyam Chiranjilal Goenka INB010009714 BSE 4 Joseph P. Manjuran INB090266417 Cochin 5 G. Premananda Prabhu INB090285515 Cochin 6 C. C. Joy INB090295819 Cochin 7 Wazir Chand Nanda INB050459920 Delhi 8 Virendra Kumar Jain INB050108217 Delhi 9 Satya Narayan Akheramka INB130332217 Gauhati 10 Ram Kripal Pandey INB130465624 Gauhati 11 T. Sudarsan INB040564018 Madras 12 V. K. Sundaram INB040136711 Madras
2. The said Officers have submitted their reports in respect of the aforesaid 12 stock brokers recommending that the proceedings against them be abated as they have become infructuous on account of the fact that the said brokers are no longer alive.
3. I have considered the recommendations of the Officers and agree with the same.
4. I note that the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 have since been repealed and replaced by the SEBI (Intermediaries) Regulations, 2008.
5. I, therefore, in exercise of the powers conferred upon me under Section 19 of the SEBI Act, 1992 read with Regulation 33B (5) and (6) of the SEBI (Intermediaries) Regulations, 2008, hereby dispose of the proceedings initiated vide Order dated August 11, 2005 against the said 12 stock brokers.
6. A copy of this Order shall be served on the stock exchanges of which these 12 stock brokers were members.
7. This Order shall come into force with immediate effect.
DATE: December 24, 2009 M. S. SAHOO PLACE: MUMBAI WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA
This page reproduces a public judgment and a summary of it. It is research material, not legal advice, and it is no substitute for advice from an advocate on your own facts.
Research this judgment with Miss Lucy
Ask what it holds, what has followed it, and what it means for your matter — in plain English, with the citations.
Try Miss Lucy free