Order in the matter of summary proceedings against the Brokers who defaulted in payment of Registration Fees
- Order No.WTM/MSS/MIRSD/35/2010
Ratio decidendi
The rule this decision rests on
Where show cause notices cannot be delivered to a registered intermediary, service by public notice in newspapers, with a fixed period for reply, is a valid substitute. If the intermediary does not reply within that period, the authority may proceed on the record before it. Where a stock broker is in default of payment of registration fees and the authority considers that the ends of justice require it, the authority may, under section 19 of the SEBI Act, 1992 read with regulation 33B(5) and (6) of the SEBI (Intermediaries) Regulations, 2008, suspend the stock broker's certificate of registration until the outstanding fees are fully paid. A sub-broker registered with a stock exchange subsidiary under the circular dated November 26, 1999 is a dependent registration. Where the registration of the stock broker is suspended, the sub-broker's registration likewise remains suspended until the outstanding fees are paid by the stock broker.
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 213 stock brokers who had defaulted in the payment of registration fees: SL. STOCK BROKER REGN.NO. STOCK NO. EXCHANGE
1 Ajnee Finance Pvt. Ltd. INB010995031 BSE 2 Alpic Securities Ltd. INB010718537 BSE 3 Bharatendu Inv. & Fin. Services Pvt. Ltd. INB010960839 BSE 4 Bhupendra Talakchand Mehta INB010433827 BSE 5 Ashok Kumar Rateria INB030077017 Calcutta 6 Arun Kumar Tulsyan INB030491415 Calcutta 7 Anand Jhawar INB030049319 Calcutta 8 Amal Chand Laha INB030052717 Calcutta 9 Ajit Kumar Jain INB030046713 Calcutta 10 A K Stock Broking Services Pvt. Ltd. INB030946535 Calcutta 11 Bijay Kumar Daga INB030658212 Calcutta 12 Ballabh Das Dwarkani INB030513119 Calcutta 13 Sunil Kumar Sarkar INB030489113 Calcutta 14 Sunder Lal Gupta INB030076713 Calcutta 15 Suman K Trivedi INB030485215 Calcutta 16 Sree Gopal Nathany INB030489916 Calcutta 17 Shyama Prasad Murarka INB030066615 Calcutta 18 Mahadeo Agarwal INB030552012 Calcutta 19 M P Kanodia INB030054617 Calcutta 20 Krishan Kumar Jalan INB030514519 Calcutta 21 Kamal Kumar Neogi INB030485910 Calcutta
SL. STOCK BROKER REGN.NO. STOCK NO. EXCHANGE
22 K L Rajgarhia INB030556116 Calcutta 23 Jamnadas L Sonpal INB030665411 Calcutta 24 Jaikishan Daga INB030050719 Calcutta 25 Ishwari Prasad Poddar INB030920611 Calcutta 26 Heera Chand Singhi INB030036615 Calcutta 27 Hari Ram Sharma INB030484813 Calcutta 28 Hari Ram Khandelwal INB030484519 Calcutta 29 Hanuman Prasad Saraf INB030483912 Calcutta 30 Gouranga Mitra INB030930915 Calcutta 31 Gopi Krishna Muskara INB030049015 Calcutta 32 Goldy Securities Pvt. Ltd. INB031077234 Calcutta 33 Gobindlall Bangur INB030514822 Calcutta 34 Excellent Stock Broking Services INB031017339 Calcutta 35 Debi Dutt Ladia INB030035411 Calcutta 36 D P Poddar INB030053217 Calcutta 37 Classic Share & Stock Broking Services Ltd. INB030567339 Calcutta 38 Chhagan Lal Binani INB030046116 Calcutta 39 Birendra Kumar Roy INB030447623 Calcutta 40 Bal Binod Bajoria INB030665117 Calcutta 41 Bafna Securities Pvt. Ltd. INB030910933 Calcutta 42 Mahesh Prahladka INB030070112 Calcutta 43 Mahesh Chandra Kapur INB030058212 Calcutta 44 Manoj Kumar Jain INB030056811 Calcutta 45 Mohan Swaroop Chaturvedi INB030487213 Calcutta 46 Mukesh Babu INB031073019 Calcutta 47 Mukul Bhattacharjee INB030936018 Calcutta 48 Murari Lal Binnani INB030063716 Calcutta 49 Nand Kishore Poddar INB030510513 Calcutta 50 Nandlal Tantia INB030666018 Calcutta 51 Narendra M Patel INB030665910 Calcutta 52 Narsing Dass Bangur INB030515028 Calcutta 53 Nawal Kishore Kejriwal INB030512414 Calcutta 54 Om Prakash Tantia INB030667419 Calcutta 55 Paramount Stock & Share Broking Ser. Ltd. INB030795233 Calcutta 56 Pradeep Kumar Kapoor INB030079015 Calcutta 57 Pramod Kumar Goenka INB030883734 Calcutta 58 Prem Lal Roy INB030043618 Calcutta 59 Prithvinath Chaturvedi INB030051013 Calcutta
SL. STOCK BROKER REGN.NO. STOCK NO. EXCHANGE
60 Prudential Stock Broking Serv. Ltd. INB030684332 Calcutta 61 Purushottam Das Jalan INB030060513 Calcutta 62 R Narasimhan INB030078418 Calcutta 63 Raj Kumar Shroff INB030707017 Calcutta 64 Ram Ratan Sonihalia INB030666312 Calcutta 65 Ratan Prakash Gupta INB030074911 Calcutta 66 Sajan Kumar Nathany INB030487017 Calcutta 67 Sam Finvest Pvt. Ltd. INB031121636 Calcutta 68 Sarita Mohta INB030041914 Calcutta 69 Shankar Lal Modi INB030487419 Calcutta 70 Shanti Swaroop Barman INB030051111 Calcutta 71 Shewram Beriwala INB030512913 Calcutta 72 Shree Kumar Majeji INB030486713 Calcutta 73 Shri Krishna Bhatter INB030071317 Calcutta 74 Shubha Karan Lohia INB030513011 Calcutta 75 Shyam Sunder Chiripal INB030065313 Calcutta 76 Surja Nath Nandy INB030071718 Calcutta 77 Thaneshwar Prasad Chaturvedi INB030490014 Calcutta 78 Suraj Global Capital Ltd. INB031018533 Calcutta 79 Vinod Baid INB030473217 Calcutta 80 Vinay B Kapadia INB030078613 Calcutta 81 Khyati Shares & Stock Brokers Ltd INB090702439 Cochin 82 S Ramachandran INB090521136 Cochin 83 Sajida B INB090689913 Cochin 84 Rosamma Thomas INB090297014 Cochin 85 Roche Kurian INB090295212 Cochin 86 Mukesh M Chandan INB090602313 Cochin 87 P.S.Nair INB090521813 Cochin 88 Praman Capital Market Services Ltd. INB090702331 Cochin 89 C J Jose INB090621314 Cochin 90 George T Samuel INB090725418 Cochin 91 Fancy Jacob INB090293517 Cochin 92 Fazalul Haque A.S. INB090968512 Cochin 93 Job Chacko INB090267817 Cochin 94 Gulab Chand Kothari INB090689012 Cochin 95 Jos Chakkunny Chungath INB090273312 Cochin 96 Jacob Mathew Kuruvnakunnel INB090266211 Cochin 97 Jyoti Chawla INB090620510 Cochin
SL. STOCK BROKER REGN.NO. STOCK NO. EXCHANGE
98 K.R. Sivakumar INB090273615 Cochin 99 Ajay Mundra INB241027516 ISE 100 Anju Jhunjhunwala INB240343617 ISE 101 Ankur Services & Growth Fund Ltd. INB241103838 ISE 102 B.V.N. Securities Pvt. Ltd. INB240850033 ISE 103 Bacnoton Investments P.Ltd. INB240973330 ISE 104 Bhansali Haresh Varjivandas INB240741919 ISE 105 BSB Financial Services Pvt. Ltd. INB241121533 ISE 106 Dipak M.Shah INB240682717 ISE 107 Fastrak Investments Pvt. Ltd. INB240756834 ISE 108 Harish Chand Jain INB241102517 ISE 109 Himanshu Thakkar INB240166018 ISE 110 Infobahn Internet Services Pvt. Ltd. INB241164533 ISE 111 Jaysukh J. Rudani INB241140913 ISE 112 K Kurian Joy INB240779612 ISE 113 K. Balasubramaniam INB240539412 ISE 114 K.Muthaiah INB240535519 ISE 115 Kankeshwari Securities Pvt. Ltd. INB241131136 ISE 116 Kolar Sharex Pvt. Ltd. INB241105130 ISE 117 Marappa Securities P.Ltd. INB240874538 ISE 118 Mathai Augusty INB241038117 ISE 119 Md. Nazish Shamim INB241058818 ISE 120 Mrinal Chakraborthy INB241100511 ISE 121 P.M.Sheth INB240791013 ISE 122 Pradeep Kumar Bansal INB240859810 ISE 123 Prerna Choudhary INB241189118 ISE 124 R Krishnamurthy INB240508813 ISE 125 R. Venkatachalam INB240539214 ISE 126 Raj Kishore INB241123612 ISE 127 Rajanarayan Capital Markets Services Ltd. INB240774639 ISE 128 Rajesh Singh Pangtey INB241124917 ISE 129 Raju K. Mathew INB240279910 ISE 130 Ravinder Singh Lamba INB241110312 ISE 131 RPG Share Brokers Pvt. Ltd. INB241090332 ISE 132 S.R.Shaare Pvt. Ltd. INB240169939 ISE 133 Salesh Gupta INB241104133 ISE 134 Samuel George INB240586918 ISE 135 Sebastian Jose INB240295916 ISE
SL. STOCK BROKER REGN.NO. STOCK NO. EXCHANGE
136 Sivaanand Securities Pvt.Ltd. INB240948936 ISE 137 Sristhi Equities Brokers P. Ltd. INB241202333 ISE 138 Uday S. Hattarki INB241090019 ISE 139 Weldeal Shares Pvt.Ltd. INB240510033 ISE 140 Prem Kumar Ratusaria INB160845618 Jaipur 141 Prem Lata Bansal INB160204913 Jaipur 142 Rajesh Agarwal INB160687411 Jaipur 143 Rajesh Goyal INB160193013 Jaipur 144 Suresh Chand Kothari INB160187616 Jaipur 145 Vijay Krishan Khosla INB160212513 Jaipur 146 Anita Hada INB160917910 Jaipur 147 Gurvinder Pal Singh INB160205315 Jaipur 148 Govind Prasad Badhalia INB160810917 Jaipur 149 Kamal Kumar Chaudhary INB160585510 Jaipur 150 Manorama Sharma INB160942014 Jaipur 151 Mukesh Gupta INB160192915 Jaipur 152 Sudhir Prasad INB160841417 Jaipur 153 Ram Niwas Ruwatia INB160845011 Jaipur 154 Sanjeev Kumar Gupta INB160917812 Jaipur 155 Roopali B Dhingra INB160843816 Jaipur 156 Ramesh Agarwal INB160186412 Jaipur 157 Sanjivani Meharda INB160843415 Jaipur 158 Rakesh Mittal INB160195315 Jaipur 159 Shaloo Gupta INB160211612 Jaipur 160 Shobhan Lal Jain INB160217313 Jaipur 161 Rohit Bohra INB160842112 Jaipur 162 Sanjay Jain INB160848312 Jaipur 163 Rajanarayan Capital Markets Services Ltd. INB230753233 NSE 164 Rajkumar Chainrai Basantani INB230649415 NSE 165 Topaz Securities Ltd. INB230772332 NSE 166 Patodia Securities Ltd. INB200835031 OTCEI 167 Pol Leasing & Finance Ltd INB200630036 OTCEI 168 Prabhakar Shetty INB200837510 OTCEI 169 Premium Securities Brokerage P. Ltd. INB200777930 OTCEI 170 Smart Capital Services Ltd. INB200929634 OTCEI 171 Soundcraft Mktg. Projects & Fin. Limited INB200503836 OTCEI 172 Spade Financial Services Limited INB200863131 OTCEI 173 Sun& Hills Financial Services Private Limited INB200824639 OTCEI
SL. STOCK BROKER REGN.NO. STOCK NO. EXCHANGE
174 Surprise Leasing And Credit Private Limited INB200921231 OTCEI 175 Swell Financial Services Private Limited INB200584639 OTCEI 176 Priceless Securities Ltd. INB200863033 OTCEI 177 Prithvi Finsec Ltd .INB200926030 OTCEI 178 R.A.Ravichandran INB200579812 OTCEI 179 R.Piyarelall Fin. Invest Ltd. INB200865433 OTCEI 180 Radhika Portfolio Ltd. INB200955638 OTCEI 181 Rajashree Fiscal Services Ltd INB200896432 OTCEI 182 Shri Rajendra Kumar Agarwal INB200950312 OTCEI 183 Shri Rakesh Khurana INB200870410 OTCEI 184 Shri Ram Murti Garg INB200915317 OTCEI 185 Shri Ramesh Kumar Virmani INB200889910 OTCEI 186 Shri Ramesh Sardana INB200869215 OTCEI 187 Shri Ravi Kumar Agarwal INB200565923 OTCEI 188 Remi Securities Ltd INB200500134 OTCEI 189 R.K.Share and Stock Broking Services Ltd. INB200966432 OTCEI 190 Rockland Leasing Ltd. INB200582533 OTCEI 191 VG Securities Limited INB200914737 OTCEI 192 Vidyapati Bhushan INB200915914 OTCEI 193 Vision Securities Limited INB200863239 OTCEI 194 Synergy Securities Limited INB200929536 OTCEI 195 Transasia Stocks & Shares INB200565825 OTCEI 196 Transworld Financial Services Ltd. INB200866432 OTCEI 197 UFL Portfolio Ltd. INB200960330 OTCEI 198 Umang Advi. & Finvest Manag. (P) Ltd. INB200865736 OTCEI 199 Unisys Securities & Fin. Ltd. INB200868234 OTCEI 200 Varisht Badhwar INB200889313 OTCEI 201 Shikha Growth Fund Ltd. INB200503630 OTCEI 202 Shivraj Holdings Private Ltd. INB200567039 OTCEI 203 S Jayaram INB200609910 OTCEI 204 S D Liquors and Advances Ltd. INB200582631 OTCEI 205 Ronender N Pawar INB200915415 OTCEI 206 Virendra Chandra Gupta INB100382115 Uttar Pradesh 207 Khanjan Gupta INB100355416 Uttar Pradesh 208 Rakesh Mishra INB100945318 Uttar Pradesh 209 Raj Dewan INB101021310 Uttar Pradesh 210 Poonam Sharma INB100363613 Uttar Pradesh 211 Tender Securities Pvt.Ltd. INB100962133 Uttar Pradesh
SL. STOCK BROKER REGN.NO. STOCK NO. EXCHANGE
212 Suresh Kumar INB100943418 Uttar Pradesh 213 Shyam Mohan Agarwal INB100519216 Uttar Pradesh 2. The Officers have submitted their reports in respect of aforesaid 213 stock brokers recommending suspension of certificates of registration granted to them for a period of 6 (six) months or till such time the outstanding registration fees is paid, whichever is later.
3. I have considered the recommendations of the Officers. I note that Show Cause Notices could not be delivered to the aforesaid 213 brokers for various reasons and therefore, in lieu thereof, a public notice was issued in various newspapers on November 17, 2009 and the said brokers were advised to reply within 15 days from the date of publication of the notice. I note that the aforesaid 213 brokers have not replied to the public notice within the stipulated time.
4. I, therefore, consider it appropriate that ends of justice would be met if the certificates of registrations of the said 213 brokers are suspended till the time the outstanding registration fees are fully paid by the stock brokers.
5. 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.
6. 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 certificates of registration of the aforesaid 213 stock brokers till the time outstanding registration fees is fully paid.
7. I note that some of these stock brokers are registered as sub brokers of the subsidiaries of the Stock Exchanges in terms of Para 2 of the Circular No.SMD-
II/POLICY/CIR-37/99 dated November 26, 1999. In view of the suspension as ordered in Para 5 above, their registration as sub-broker shall also remain suspended till the time outstanding registration fee is fully paid by the stock brokers.
8. A copy of this Order shall be served on the respective Stock Exchanges of which these 213 stock brokers are members and /or sub brokers for necessary action.
9. This Order shall come into force on the expiry of 21 days from the date of this order.
Date : 3/2/2010 M. S. SAHOO Place: Mumbai WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA
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