In the matter of Summary Proceedings against the Stock Brokers who defaulted in Payment of Registration Fees
- Order No.WTM/MSS/MIRSD/42/2010
Ratio decidendi
The rule this decision rests on
Where a stock broker has paid the registration fees outstanding to SEBI after the enquiry officers recommended suspension of registration, the Board may dispose of the summary proceedings against that broker without imposing the recommended suspension. Proceedings initiated under the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002, which have since been repealed, may be disposed of under the powers conferred by Section 19 of the SEBI Act, 1992 read with Regulation 33B(5) and (6) of the SEBI (Intermediaries) Regulations, 2008.
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, inter alia, against the following 10 stock brokers who had defaulted in the payment of registration fees: SL. NAME OF STOCK BROKER REGN. NO. STOCK NO. EXCHANGE 1 Dundee Securities Company Pvt. Ltd. INB011095636 BSE 2 Pranav Securities Pvt. Ltd. INB010714336 BSE 3 Jatan Devi Nahata INB030795910 Calcutta 4 Tom Jacob INB090289815 Cochin 5 Vivek Agarwal INB050108912 Delhi 6 Gajendra Singhvi INB160928018 Jaipur 7 HBR Stock & Shares Ltd. INB120788231 Ludhiana 8 Krishan Chand Gupta INB120318213 Ludhiana 9 O.J.Financial Services Pvt. Ltd. INB200608637 OTCEI 10 Landmark Finstock Pvt. Ltd. INB190790332 Vadodara
2. The Officers have submitted reports recommending suspension of certificates of registration for a period of 6 (six) months or till such time the outstanding registration fees is paid, whichever is later, in respect of stock brokers at Sl. Nos. 1-9 and suspension of certificate of registration till such time as the stock broker clears his liabilities with SEBI in full in respect of the stock broker at Sl.No.10.
3. I have considered the recommendations of the Officers. I note that the above 10 stock brokers have subsequently paid the outstanding fees as per Schedule III of the SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992.
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that the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 have since been repealed and replaced by the SEBI (Intermediaries) Regulations, 2008.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 10 stock brokers. I, however, advise these stock brokers to pay the fees as per Schedule III of the Stock Brokers Regulations in time in future.
6. A copy of this Order shall be served on the stock exchanges of which these 10 stock brokers are members.
7. This Order shall come into force with immediate effect.
DATE: March 22, 2010 M. S. SAHOO PLACE: MUMBAI WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA
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