Order in the matter of summary proceedings against the stock brokers who defaulted in payment of registration fees - Arihant Equity fund Ltd
- Order No.WTM/MSS/MIRSD/87/2011
Ratio decidendi
The rule this decision rests on
Where a stock broker has paid its outstanding registration fees after summary proceedings for default in such payment were initiated, suspension of its certificate of registration is not warranted, and the proceedings may be disposed of without any direction. Summary proceedings commenced under a repealed regulatory regime may be disposed of under the successor regulations, namely Regulation 33B(5) and (6) of the SEBI (Intermediaries) Regulations, 2008, read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
WTM/MSS/MIRSD/87/2011 SECURITIES AND EXCHANGE BOARD OF INDIA, MUMBAI ORDER UNDER REGULATIONS 33A AND 33B OF THE SEBI (INTERMEDIARIES) REGULATIONS, 2008 IN THE MATTER OF SUMMARY PROCEEDINGS AGAINST THE STOCK BROKERS WHO DEFAULTED IN PAYMENT OF REGISTRATION FEES 1. Vide an 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 an Officer to conduct summary proceeding against Arihant Equity Fund Ltd. (SEBI Regn. No.INB200760633) (Arihant) who had allegedly defaulted in payment of registration fees as a stock broker. The Officer, after taking into account the reply of Arihant, submitted the report dated March 24, 2009 recommending suspension of certificate of registration of Arihant for a period of six months or till such time outstanding registration fees is paid in full, whichever is later. 2. I have considered the recommendation of the Officer and the material available on record. I find that after the initiation of the summary proceedings on August 11, 2005, Arihant has paid the outstanding registration fees as per Schedule III of the SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992. Hence suspension of certificate of registration is not warranted. 3. 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that the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 have since been repealed and replaced by the SEBI (Intermediaries) Regulations, 2008. 4. 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 summary proceedings initiated vide Order dated August 11, 2005 against Arihant Equity Fund Ltd. without any direction. 5. A copy of this Order shall be served on the OTCEI of which Arihant is a member. 6. This Order shall come into force with immediate effect.
DATE: January 25, 2011 M. S. SAHOO PLACE: MUMBAI WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA
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