sebi:16873

SEBI · SEBI · 2003-02-28 · G. N. Bajpai, Chairman, SEBI

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Facts / Headnote

Certificate of registration no. INB 140615711 cancelled with immediate effect

Regulations

• Reg. 4
• Reg. 15
• Reg. 16
• Reg. 25

Parties

• Homi N. Darukhanawala, M/S. Hormuzd Financial And Investment Consultancy Services

Holding

The certificate of registration of the broker, Homi N. Darukhanawala of M/s. Hormuzd Financial and Investment Consultancy Services, as a stock broker is cancelled with immediate effect for ceasing to be a member of the Mangalore Stock Exchange.

Full text

1.1 Homi N. Darukhanawala, M/S. Hormuzd Financial And Investment Consultancy Services. (hereinafter referred to as the broker) is a member of Mangalore Stock Exchange (hereinafter referred to as MSE) and registered with Securities and Exchange Board of India (hereinafter referred to as SEBI) vide registration no. INB140615711. 1.2 An officer was appointed vide Order dated 28.02.2003 to conduct an enquiry into the possible violation of regulation 15 (c) of SEBI (Procedure For Holding Enquiry By Enquiry Officer And Imposing Penalty) Regulations, 2002, (hereinafter referred to as ‘the said Enquiry Regulations’) alleged to have been committed by the broker. 2.0 REPORT OF THE OFFICER AND RECOMMENDATION : 2.1 The officer issued a notice dated 13.03.2003 under regulation 16 (2) of the said Enquiry Regulations to the broker stating that the broker has ceased to be a member of the exchange and his registration is liable to be cancelled. It was further stated that if the broker failed to reply to the notice then it would be presumed that the broker has no explanation to offer and matter would be proceeded as per the regulations. The said notice was issued to the member and also a copy of the same was forwarded to MSE requesting it to serve the same upon the broker. MSE vide its letter dated 24.03.2003 informed that they had served the notice by registered post A.D. on the broker at their latest address. The officer in his report stated that he was satisfied that the said notice was dul

3.0 CONCLUSIONS : 3.1 I have perused the Report of the officer dated 30.05.2003 and do not find any reason to differ with the recommendation of the Officer inasmuch as the Mangalore Stock Exchange vide its letter dated 20.05.2002 informed that the broker was declared a defaulter on 12.01.2002 and ceased to be a member of the exchange for non-payment of annual subscription for the years 1999-2000 and 2000-2001, non-submission of audit report for the years 1997-98, 1998-99, 1999-2000, 2000-2001, non-maintenance of capital adequacy and non-payment of SBT contribution of Rs. 96,000/-. I am also convinced that the notice was duly served upon the broker. Under Rule 4 (a) of the said Rules, one of the conditions for granting certificate of registration as a stock broker is that the broker should hold the membership of a stock exchange. Under regulation 25 (a) of the said Regulations, a broker is liable for action if he fails to comply with any conditions subject to which registration has been granted. Since the broker ceased to be a member of the exchange as confirmed by the Mangalore Stock Exchange vide its letter dated 20.05.2002, I am fully convinced that the broker has failed to comply with the above provisions of law, therefore, liable for action under regulation 25 (a) of the said Regulations read with regulation 15 (c) of the said Enquiry Regulations. 4.0 ORDER : 4.1 Therefore, in exercise of the powers conferred upon me by virtue of sub section (3) of section 4 of the Securi

Place : Mumbai G. N. BAJPAI Date : June 17, 2003 CHAIRMAN SECURITIES AND EXCHANGE BOARD OF INDIA

Source: SecMarx — sebi:16873. 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.