Order in the matter of Summary Proceedings against the Stock Brokers who defaulted in Payment of Registration Fees
- Order No.WTM/MSS/MIRSD/56/2010
Ratio decidendi
The rule this decision rests on
The payment of the outstanding registration fees, as required by Schedule III of the SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992, after initiation of summary proceedings for non-payment, means that cancellation of registration is not warranted. Where the enquiry regulations under which summary proceedings were initiated have been repealed and replaced by the SEBI (Intermediaries) Regulations, 2008, the pending proceedings may be disposed of under Regulation 33B(5) and (6) of the 2008 Regulations, read with section 19 of the SEBI Act, 1992, without further directions, the respondents being advised only to pay fees as required in future.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
WTM/MSS/MIRSD/56/2010 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 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 three stock brokers who had defaulted in the payment of registration fees: SL. NAME OF STOCK BROKER REGN. NO. STOCK NO. EXCHANGE 1 Rajeeb Kumar Agarwal INB100366415 Uttar Pradesh 2 Kishore Securities Pvt. Ltd. INB101023837 Uttar Pradesh 3 Neeraj Berry INB100699617 Uttar Pradesh 2. The Officers have submitted reports recommending cancellation of certificates of registration of the said three stock brokers, as they have been declared defaulters by the stock exchange. 3. I have considered the recommendations of the Officers. I note that the proceedings were initiated against the said three brokers for non-payment of registration fees. I also note that they have subsequently paid the registration fees as per Schedule III of the SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992. Hence cancellation of registration is not called for.
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that the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 have since been repealed and replaced by the SEBI (Intermediaries) Regulations, 2008.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 three stock brokers without any instructions. I, however, advise these three stock brokers to pay the fees as per the Regulations in future. 6. A copy of this Order shall be served on UPSE of which these three stock brokers are members.
7. This Order shall come into force with immediate effect.
DATE: June 25, 2010 M. S. SAHOO PLACE: MUMBAI WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA
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