sebi:15356

SEBI · SEBI · 2003-10-17 · Madhukar, Whole Time Member

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Minor penalty of 'Censure' imposed on the sub broker, Karur Mav Financial Services, with direction to be more cautious in dealing with securities and to adhere to SEBI Act, 1992 and Rules/Regulations thereunder.

Provisions invoked

• s. 19

Regulations

• Reg. 13(2)
• Reg. 13(4)
• Reg. 5
• Reg. 15

Parties

• Karur Mav Financial Services (sub broker)

Holding

The sub broker, Karur Mav Financial Services, was held guilty of violating Clauses A(1), A(2) and B(5) of the Code of Conduct specified in Schedule II read with Regulation 15 of the SEBI (Stock Brokers and Sub Brokers) Regulations, 1992, and a minor penalty of 'Censure' was imposed on it.

Full text

2. Securities and Exchange Board of India (hereinafter referred to as SEBI) conducted an investigation which revealed the violations committed by the sub broker.

6. I have considered the facts of the case, the findings of the Enquiry Officer and note the significant point as under;

“5. Business of Defaulting clients: A sub broker shall not deal or transact business knowingly, directly or indirectly or execute an order for a client who has failed to carry out his commitments in relation to securities and is in default with another broker or sub-broker.” In view of the above, I hold that sub broker is guilty of violating the provisions of B(5) of the code of conduct of stock broker regulations.

Source: SecMarx — sebi:15356. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.