Order in the matter of summary proceedings against the stock brokers who defaulted in payment of registration fees
- Order No.WTM/MSS/MIRSD/50/2010
Ratio decidendi
The rule this decision rests on
Where the registration certificate of a stock broker has already been cancelled, the broker is no longer a broker, and pending summary proceedings against it for default in payment of registration fees may be disposed of without further adjudication. Proceedings initiated under a regulation since repealed and replaced may be disposed of under the power conferred by the replacing regulations, read with section 19 of the SEBI Act, 1992. Such disposal does not preclude any action or proceeding that SEBI may take in future against the erstwhile brokers.
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 two stock brokers who had defaulted in the payment of registration fees:
SL. NAME OF STOCK BROKER REGISTRATION NO. STOCK NO. EXCHANGE 1. Home Trade Ltd. INB010624639 BSE 2. Classic Shr & Stck Brkg Svcs. Ltd. INB230597033 NSE
2. The said Officers have submitted their reports in respect of the aforesaid two stock brokers recommending that the proceedings may be dropped as the certificate of registration is already cancelled.
3. I have considered the recommendations of the Officers. I note that the certificates of registration of these two brokers have already been cancelled for violation of the SEBI (Stock Brokers and Sub Brokers) Regulations, 1992 and the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 respectively. Hence they are no more brokers.
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that the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 have since been repealed and replaced by the SEBI (Intermediaries) Regulations, 2008.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 two stock brokers. However, this order does not preclude the actions taken or any other proceedings pending / to be taken in future by SEBI against these erstwhile brokers.
6. A copy of the order shall be served on the stock exchanges of which these two stock brokers were members.
7. This Order shall come into force with immediate effect.
DATE: 27/4/2010 M. S. SAHOO PLACE: MUMBAI WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA
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