Order 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 Officers to conduct summary proceedings, inter alia, against the following seven stock brokers who had defaulted in the payment of registration fees: SL NO. NAME OF STOCK BROKER REGN. NO. STOCK EXCHANGE 1. Ganapati N. Hegde INB080903519 Bangalore 2. P. R. Shah Share & Stock Broker Pvt. Ltd. INB010947538 BSE 3. M. Meenakshi Sundaram INB210508919 Coimbatore 4. Grewal Fincaps Pvt. Ltd. INB120964039 Ludhiana 5. Shrikar Investments Private Limited INB200929439 OTCEI 6. Vijayalakshmi Ahilan INB200836717 OTCEI 7. Sun Marketing and Services Private Limited INB200835237 OTCEI 2. The Officers have submitted their reports in respect of the aforesaid seven stock brokers recommending cancellation of certificates of registration granted to them as they are no longer members of the respective stock exchanges and have also not paid the outstanding registration fees.

3. I have considered the recommendations of the Officers. I note that the above mentioned stock brokers have either been expelled or their membership cards have been auctioned by the respective stock exchanges. They have also failed to pay the registration fees. Therefore, they are liable for actions under regulation 27 (i) and (vii) of the SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992.

4. Further, in terms of regulation 6A (1) (a) and (d) of the SEBI (Stock Brokers and Sub-Brokers Regulations), 1992, registration granted to a stock broker is subject to conditions that it holds the membership of the stock exchange and pays the fees in the manner provided in the regulations. Since the above mentioned stock brokers no longer fulfil these conditions, their certificates of registration are liable to be cancelled.

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that the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 have since been repealed and replaced by the SEBI (Intermediaries) Regulations, 2008.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. 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 cancel the certificates of registration of the aforesaid seven stock brokers.

7. A copy of this Order shall be served on the respective Stock Exchanges of which these seven stock brokers were members for necessary action.

8. This Order shall come into force on the expiry of 21 days from the date of this Order.

DATE : September 09, 2010 M. S. SAHOO PLACE: MUMBAI WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA