sebi:16833
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Facts / Headnote
Certificate of registration as stock broker cancelled with immediate effect
Regulations
- Reg. 27
- Reg. 26(2)
- Reg. 26
- Reg. 29(3)
- Reg. 23
Parties
- M/s. Pranam Capital Market Services Ltd.
Holding
The certificate of registration of M/s. Pranam Capital Market Services Ltd. as a stock broker was cancelled with immediate effect on the ground that the broker ceased to be a member of the stock exchange after being declared a defaulter and not being re-admitted within six months.
Full text
informed that the said broker was not re-admitted on the exchange. A 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 was sent to NSE vide letter dated 24.09.2002 requesting it to handover the same to the broker under acknowledgement to SEBI. NSE vide its letter dated 18.10.2002 informed SEBI stating that the said show cause notice had been sent to the broker by registered post A.D. which were returned undelivered by the postal authorities enclosing therewith copies of the registered A.D. cards and envelopes with the comments from the postal authorities. Therefore, I am convinced that the broker ceased to be a member of the exchange and liable for penalty under regulation 26 (2) (iii) of the said Regulations. I have perused the material available on record and I have also taken on record the letters dated 06.06.2002 ,12.09.2002 and 18.10.2002 of NSE informing SEBI about the declaration of broker as a defaulter on the exchange. Regulation 26 (2) (iii) provides that a penalty of cancellation of registration may be imposed in the event of cancellation of membership by the stock exchange. As per rule 4 (a) of SEBI (Stock Brokers and Sub Brokers) Rules, 1992, one of the conditions for gran
PLACE : MUMBAI G. N. BAJPAI DATE :12- Jun-2003 CHAIRMAN SECURITIES AND EXCHANGE BOARD OF INDIA
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Source: SecMarx — sebi:16833. 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.