sebi:190-210_210_Order_against_Devichand_Hansraj_Oswal_Jan_12_2006

SEBI · SEBI · 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

Suspension of Certificate of Registration of sub-broker for two months

Provisions invoked

• s. 19

Regulations

• Reg. 13(4)
• Reg. 16
• Reg. 17
• Reg. 17(1)
• Reg. 21
• Reg. 18

Parties

• Devichand Hansraj Oswal

Holding

The sub-broker Devichand Hansraj Oswal was held guilty of violating Regulation 21 of the Broker Regulations for non-cooperation with the inspection team and for failing to maintain books of accounts and records. The Certificate of Registration of the sub-broker was suspended for a period of two months.

Full text

c)      Further, it was found by the Enquiry Officer that the sub-broker has not co-operated with the inspection team and did not explain the nature of his transactions with the bro brokers. The Enquiry Officer also found that the sub-broker has to maintain all the books of accounts and records irrespective of the fact whether he was doing agency or p business and therefore concluded that the sub-broker by not cooperating and not fulfilling its obligation is guilty of violating the provisions of Regulation 21 of the Broker Re 4.3  I note that Regulation 17(1) of the Broker Regulations requires that every  stock broker shall keep and maintain books of accounts, records and documents namely Sauda Regulation 18 of the Broker Regulations further requires that every stock broker shall preserve the books of accounts and other records maintained under Regulation 17 minimum period of 5 years. Regulation 21 also states that : (1)       It shall be the duty of every director, proprietor, partner, officer and employee of the stock-broker who is being inspected, to produce to the inspecting authority such bo and other documents in his custody or control and furnish him with the statements and information relating to the transactions in securities market within such time as t may require.

(2)       The stock-broker shall allow the inspecting authority to have reasonable access to the premises occupied by such stock-brokers or by any other person on his be extend reasonable facility for examining any books, records, documents and computer data in the possession of the stock-broker or any other person and also prov documents and other materials which, in the opinion of the inspecting authority are relevant. (3)       ……………………………

(4)       It shall be the duty of every director, proprietor, partner, officer and employee of the stock-broker to give to the inspecting authority all assistance in connection with t which the stock broker may reasonably be expected to give.

Source: SecMarx — sebi:190-210_210_Order_against_Devichand_Hansraj_Oswal_Jan_12_2006. 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.