In the matter of Summary Proceedings against the Stock Brokers who defaulted in payment of Registration Fees

WTM/MSS/MIRSD/84/2010 SECURITIES AND EXCHANGE BOARD OF INDIA, MUMBAI ORDER UNDER REGULATIONS 33A AND 33B OF THE SEBI (INTERMEDIARIES) REGULATIONS, 2008 IN THE MATTER OF SUMMARY PROCEEDINGS AGAINST THE STOCK BROKERS WHO DEFAULTED IN PAYMENT OF REGISTRATION FEES 1. Vide an 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 an Officer to conduct summary proceeding against Upendrabhai K. Patel (Trade Name: Patel U. K. & Co.) (SEBI Regn. No.INB190414917), who had defaulted in the payment of registration fees as a stock broker.

2. The said Officer has submitted his report dated December 14, 2009 recommending suspension of certificate of registration of Upendrabhai K. Patel till such time its fee liabilities are paid in full. I have considered the recommendation of the Officer and material available on record.

3. I note that in terms of Regulation 6A (1), registration granted to a stock broker is subject to the condition that it pays the fees in the manner provided in the regulations. Regulation 10(1) of the SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992 (Regulations) requires a stock broker to pay fees as specified in Schedule III. The Schedule III requires a stock broker to pay the fees computed with reference to annual turnover of the preceding financial year by first day of October. Regulation 10(2) authorizes SEBI to suspend the registration of a stock broker who fails to pay the fees required under the Regulations. Under Regulation 27(vii), a stock broker is liable for actions, including suspension of registration, if it has failed to pay fees as per Schedule III. It is clear from the enquiry report and the records of SEBI that Upendrabhai K. Patel has not paid fees in accordance with the Regulations and no more fulfils the condition of registration, and is, therefore, liable for the actions under Regulation 10(2) read with Regulation 27(vii). I, therefore, agree with the recommendation of the Officer.

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that the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 have since been repealed and replaced by the SEBI (Intermediaries) Regulations, 2008.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. In the facts and circumstances of the case, I, 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 suspend the certificate of registration of Upendrabhai K. Patel (SEBI Regn. No.INB190414917) till the time the outstanding registration fees is paid in full. 6. A copy of this Order shall be served on the Vadodara Stock Exchange of which Upendrabhai K. Patel is a member, for necessary action. 7. This Order shall come into force on the expiry of 21 days from the date of this Order.

DATE: December 22, 2010 M. S. SAHOO PLACE: MUMBAI WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA