Order in the matter of Summary Proceedings against the brokers who defaulted in payment of registration fees
- Order No.WTM/MSS/03/MIRSD/May/2009
Ratio decidendi
The rule this decision rests on
Where stock brokers against whom summary proceedings were initiated for default in payment of registration fees have since paid those fees, the proceedings against them may be disposed of, as the officers recommended, without imposing any penalty. Proceedings initiated under a regulation that has since been repealed and replaced may be disposed of by exercise of the powers conferred by Section 19 of the SEBI Act, 1992, read with the regulations that replaced it.
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 16 stock brokers who had defaulted in the payment of registration fees:
Sr. No. Name of Stock Broker SEBI Registration Name of the Stock No. Exchange 1 Ajay Jain INB130764812 Gauhati 2 Basant Kumar Jain INB130333118 Gauhati 3 Jagdish Prasad Mundhra INB130329014 Gauhati 4 Mahesh Rani INB131027410 Gauhati 5 T. Venku Reddy INB040469638 Madras 6 Kamal Kumar Khanna INB170257213 Bhubaneswar 7 Rishi Dev Batra INB170260513 Bhubaneswar 8 Umra Securities Limited INB171135834 Bhubaneswar 9 Uttam Jhavar INB070612219 Madhya Pradesh 10 Dharti Finstock Private Ltd. INB021063434 Ahmedabad 11 GCCL Securities Ltd. INB020762737 Ahmedabad 12 Munoth Finance & Leasing Ltd. INB021097135 Ahmedabad 13 Neel Finstock Pvt. Ltd INB021164133 Ahmedabad 14 K. S. Satyaprakash INB080522814 Bangalore 15 Sobhagya Securities Ltd. INB171074835 Bhubaneswar 16 Hemanta Kumar Patnaik INB170516410 Bhubaneswar
2. The said Officers have submitted their reports in respect of the aforesaid 16 stock brokers 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that the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 have since been repealed and replaced by the SEBI (Intermediaries) Regulations, 2008.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 dispose of the proceedings initiated vide Order dated August 11, 2005 against the said 16 stock brokers.
6. A copy of the order shall be served on the stock exchanges of which these 16 stock brokers were members.
7. This Order shall come into force with immediate effect.
Date: May 7, 2009 M. S. SAHOO Place: Mumbai WHOLE TIME MEMBER
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