Order in the matter of Summary Proceedings against the brokers who defaulted in payment of registration fees
- CitationWTM/MSS//MIRSD/05/2009
Ratio decidendi
The rule this decision rests on
Where a summary proceeding was initiated under a repealed regulation for default in payment of registration fees, and the defaulting intermediaries have since paid those fees, the regulator may drop the proceedings on the officers' recommendation, the payment having removed the basis for them. The regulator's power to drop such proceedings, initiated under regulations since repealed and replaced, is exercised under the Section 19 power of the SEBI Act, 1992 read with Regulations 28 and 29 of the SEBI (Intermediaries) Regulations, 2008.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 63 stock brokers who had defaulted in the payment of registration fees:
Sl. No. Name of Stock Broker Registration Name of the No. Stock Exchange 1 Ajay Kumar Arora INB241152512 ICSE 2 Amit Sahita Finance Pvt. Ltd. INB241044339 ICSE 3 B.N.Securities Ltd. INB241037036 ICSE 4 Bright Shares & Stocks Pvt. Ltd. INB240937236 ICSE 5 Chandra Prakash Chaturvedi INB240255118 ICSE 6 D. Soundararaj INB240515610 ICSE Dadiawala Securities & Technologies Pvt. 7 Ltd. INB241168138 ICSE 8 DCS Broking Pvt. Ltd. INB241163030 ICSE 9 Garron Shares & Stock Brokers Pvt. Ltd. INB241194738 ICSE 10 Jawahar Lal Jain INB240141110 ICSE 11 Jayesh J Mehta INB241153510 ICSE 12 Jigar A Shroff INB240616913 ICSE 13 Kamal Chand Sethia INB240257411 ICSE 14 Keynote Securities Pvt. Ltd. INB241165738 ICSE 15 Madhu Khowala INB240424813 ICSE 16 P.V.Gupta INB241187112 ICSE 17 Parasnath Financial & Investments Ltd. INB241115832 ICSE 18 Pawan Kumar Daruka INB241068718 ICSE 19 Pukhraj Lunkar INB240331513 ICSE 20 S & D Securities Pvt. Ltd. INB240813130 ICSE 21 Sandeep Mittal INB240830811 ICSE 22 Sanjay Chokhany INB240423914 ICSE
23 Shatrunjay Securities Pvt. Ltd. INB241124131 ICSE 24 Sudhir Kumar Bharadwaj INB241202911 ICSE 25 Sunil Gadia INB241202119 ICSE 26 Sunil Kumar Agrawal INB241162917 ICSE 27 Sun & Cow Securities Pvt. Ltd. INB241103630 ICSE 28 TFC Fincons Pvt. Ltd. INB240727330 ICSE 29 True Tone Distributors Pvt. Ltd. INB241142331 ICSE 30 Ushmi Traders Pvt. Ltd. INB241104331 ICSE 31 V. Shivaram Kamath INB240614611 ICSE 32 Varesh Securities Pvt. Ltd. INB241155739 ICSE 33 Satish Kumar Maheshwari INB241114918 ICSE 34 Mehta Rajnikant K INB241102012 ICSE 35 Earnest John Securities Pvt. Ltd. INB241159236 ICSE 36 G. Raj & Co. (Consultants) Ltd. INB240587239 ICSE 37 K. I. Santha INB240267014 ICSE 38 Lise Varghese INB240280814 ICSE 39 Panchsheel Securities Pvt. Ltd. INB241106732 ICSE 40 Quest Fincap Ltd. INB241105932 ICSE 41 VKG Finance & Investment Pvt. Ltd INB241137935 ICSE 42 N.Punam Chand Marothi INB240534314 ICSE 43 D.S.Gupta INB241114017 ICSE 44 Mega Millennium Investment Pvt. Ltd INB241101337 ICSE 45 Sandeep P. Shah INB240915711 ICSE 46 M G Shares & Stocks Private Limited INB241194431 ICSE 47 Tarak Mishra INB170264519 BhSE 48 Rajkumar Agrawala INB170261013 BhSE 49 K. K. Bharadia & Sons Private Limited INB170631237 BhSE 50 Eastwood Investments Ltd. INB080654634 BgSE 51 Auro Securities Pvt Ltd INB170920737 BhSE 52 Sanjay Mukandas Munot INB110243318 PSE 53 J. N. Gupta INB110242211 PSE 54 Jani Samir Narendrakumar INB110750115 PSE 55 CPR Capital Services Ltd INB050876938 DSE 56 DPA Capital Pvt Ltd INB050987432 DSE 57 Express Securities (P) Ltd INB050884131 DSE 58 Investsmart India Ltd. INB051020833 DSE 59 RRB Master Securities Delhi Limited INB050611330 DSE 60 ISF Securities Ltd. INB050876334 DSE 61 S&S Securities Ltd. INB050838235 DSE 62 Suresh Kumar Gupta INB050629118 DSE 63 Goldy Securities Pvt. Ltd. INB051077239 DSE 2. The said Officers have submitted their reports in respect of the aforesaid 63 stock brokers inter alia recommending that the proceedings against them may be dropped as they have subsequently paid the registration fees as per Schedule III of the SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992.
3. I have considered the recommendations of the Officers and agree with the same.
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 28 and 29 of the SEBI (Intermediaries) Regulations, 2008, hereby drop proceedings initiated vide Order dated August 11, 2005 against the said 63 stock brokers.
6. A copy of the order shall be served on the respective stock exchanges, of which these 63 stock brokers are members.
7. This Order shall come into force with immediate effect.
Date: June 9, 2009 M. S. SAHOO Place: Mumbai WHOLE TIME MEMBER
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