sebi:16831
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Facts / Headnote
Certificate of registration cancelled with immediate effect
Regulations
- Reg. 27
- Reg. 26(2)
- Reg. 26
- Reg. 29(3)
- Reg. 23
Parties
- M/s. E’L Dorado Guarantee Ltd.
Holding
The certificate of registration of M/s. E’L Dorado Guarantee Ltd. as a stock broker was cancelled with immediate effect.
Full text
show cause notice dated 24.09.2002 was issued advising the broker to show cause as to why the certificate of registration as a stock broker should not be cancelled under Regulation 26(2) (iii) read with regulation 27 of SEBI (Stock Brokers and Sub Brokers) Regulations, 1992 (hereinafter referred to as the said regulations). The said show cause notice was sent to the BSE requesting it to handover the same to the broker under acknowledgment to SEBI. The BSE vide its letter dated 09.01.2003 returned the said show cause notice to SEBI stating that the said broker was declared defaulter on 18.07.2001, therefore, no longer a member of BSE. I have perused the material available on record and I have also taken on record the letters dated 17.05.2002, 09.09.2002 and 09.01.2003 of BSE informing SEBI about the declaration of the said broker as a defaulter. As per rule 4 (a) of SEBI (Stock Brokers and Sub Brokers) Rules, 1992, one of the conditions for granting certificate of registration is that the broker shall hold the membership of a stock exchange. In the instant case, the broker ceased to be a member of a stock exchange. In view of this, I feel that this case attracts penalty of cancellation of certificate of registration as provided under Regulation 26 (2) (iii) of the said regulations. Therefore, in exercise of the powers conferred upon me by section 4 (3) of Securities and Exchange Board of India Act, 1992 read with Regulation 29(3) read with clauses (a) and (b) of first proviso
SECURITIES AND EXCHANGE BOARD OF INDIA
: MUMBAI G. N. BAJPAI DATE : 12- Jun-2003 CHAIRMAN
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Source: SecMarx — sebi:16831. 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.