Order in the matter of summary proceedings against the brokers who defaulted In payment of registration fees
- CitationWTM/MSS/17/MIRSD/092009
Ratio decidendi
The rule this decision rests on
Where stock brokers who were the subject of summary proceedings for default in payment of registration fees have since paid the outstanding fees, the proceedings may be disposed of without imposing the recommended suspension or any other penalty, and the brokers may be warned that future default will be viewed seriously. Proceedings initiated under a regulation that has since been repealed and replaced may be disposed of under the replacing regulations, and the power to do so is exercised under Regulation 33B(5) and (6) of the SEBI (Intermediaries) Regulations, 2008, read with Section 19 of the SEBI Act, 1992.
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 17 stock brokers who had defaulted in the payment of registration fees: Sl. Name of the Stock Broker SEBI Name of the No. Registration No. Stock Exchange 1 Ramesh Kumar Arya INB030486214 Calcutta 2 Gouri Shankar Mantry INB030057419 Calcutta 3 M Harish Kumar INB130326213 Gauhati 4 Al-Falah Investments Ltd. INB070812434 Madhya Pradesh 5 Madras Prudent Investment Services Pvt. Ltd. INB201197739 OTCEI 6 Nucent Securities Ltd. INB200681437 OTCEI 7 Mangla Capital Services Pvt. Ltd. INB200675834 OTCEI 8 Khandelwal Securities Ltd. INB200770330 OTCEI 9 Intec Share And Stock Brokers Ltd. INB200877333 OTCEI 10 Horizon Portfolio Ltd. INB200864434 OTCEI 11 DBN Securities Pvt. Ltd. INB201142636 OTCEI 12 Facets Securities Pvt. Ltd. INB200940633 OTCEI 13 Deora Associates Pvt. Ltd. INB200863337 OTCEI 14 Chetan J Shah INB200533113 OTCEI 15 Chamundi Investments INB200558528 OTCEI 16 Ashika Stock Broking Limited INB200833435 OTCEI 17 Avinash Capital Markets Pvt. Ltd. INB200865638 OTCEI
2. The Officers have submitted their reports in respect of aforesaid 17 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, however, note that the aforesaid 17 brokers have since 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 17 stock brokers without imposing any penalty on them. I, however, warn these 17 brokers to pay in time the fees under the Regulations in future. Failure in this regard would be viewed seriously.
6. A copy of this Order shall be served on the stock exchanges of which these 17 stock brokers are members.
7. This Order shall come into force with immediate effect.
Date: September 15, 2009 M. S. SAHOO Place: Mumbai WHOLE TIME MEMBER
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