Order against BSE Broker Shripal Jain in the matter of Somplast Leather Industries Ltd
- Order No.WTM/KMA/IVD/182/12/2009
Ratio decidendi
The rule this decision rests on
A charge of violating the PFUTP Regulations, 1995, cannot be sustained against a stock broker where the material on record contains no evidence establishing the alleged violation. The absence of evidence is the sole basis for the finding. Where the Enquiry Officer's report concludes that such a charge fails for want of evidence and recommends no penalty, and the adjudicating authority, having considered the report and the record, agrees with those findings, the enquiry proceeding is disposed of without any penalty.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
WTM/KMA/IVD/182/12/2009
SECURITIES AND EXCHANGE BOARD OF INDIA ORDER UNDER REGULATION 28(2) AND 38(2) OF THE SECURITIES AND EXCHANGE BOARD OF INDIA (INTERMEDIARIES) REGULATIONS, 2008 IN RESPECT OF M/S. SHRIPAL JAIN (NOW KNOWN AS SPJ STOCK BROKERS PRIVATE LIMITED) IN THE MATTER OF SOMPLAST LEATHER INDUSTRIES LIMITED
1. The Securities and Exchange Board of India (hereinafter referred to as SEBI) had initiated an enquiry proceeding, vide Order dated July 22, 2005 against the stock broker namely, M/s. Shripal Jain [Member, Bombay Stock Exchange Limited] under the provisions of the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 (since repealed) for the alleged violations of the securities laws while dealing in the shares of Somplast Leather Industries Limited. The Enquiry Officer, vide Report dated July 28, 2006 concluded that in the absence of evidence, the charge of violating the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 1995 could not be sustained against the aforesaid stock broker and accordingly did not recommend any penalty. After having considered the Enquiry Report and other material on record, I am in agreement with the findings of the Enquiry Officer. Therefore, the present enquiry proceeding against the stock broker is disposed of in terms of the provisions of the Securities and Exchange Board of India (Intermediaries) Regulations, 2008. 2. In view of the foregoing, in exercise of powers conferred upon me under Section 19 of the Securities and Exchange Board of India Act, 1992 read with Regulations 28(2) and 38(2) of the Securities and Exchange Board of India (Intermediaries) Regulations, 2008, hereby dispose of the instant enquiry proceedings initiated against M/s. Shripal Jain, now known as SPJ Stock Brokers Private Limited (Registration No. 011206738), Member, Bombay Stock Exchange Limited, without any penalty.
DR. K. M. ABRAHAM WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA
PLACE: MUMBAI DATE: DECEMBER 8, 2009
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