sebi:CO/09/ISD/06/2004

SEBI · SEBI · 2001-04-27 · G.N. Bajpai, Chairman

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

Facts / Headnote

Smt. Saroj Banthia directed to disassociate from the securities market and not to buy, sell or otherwise deal in securities for a period of 12 months w.e.f. 14.7.2003

Provisions invoked

• s. 11B
• s. 4(3)
• s. 11

Parties

• Smt. Saroj Banthia

Holding

Smt. Saroj Banthia, as Director of Harvest Deal Securities Limited, was found liable for the irregularities/violations committed by the broker and was directed to disassociate from the securities market and not buy, sell or otherwise deal in securities for 12 months w.e.f. 14.7.2003.

Full text

Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ ORDER Order under Section 11 read with Section 11B of the Securities and Exchange Board of India Act, 1992 against Smt. Saroj Banthia, Director, Harvest Deal Securities Limited CO/09/ISD/06/2004

7. -do- Assistant General Manager(F&A) The Chairman Through General Manager (P&D) -do- 8. -do- Chairman The Board Monthly However, it was observed that this reporting system was not observed in practice and the Chairman and other officers of NBL who were mandated to decide on the scrips to be purchased or sold, had delegated these decisions to the three stock brokers. An analysis of the transactions entered into by NBL through the above brokers till 31.3.2001, revealed that:

I note that in her reply Saroj Banthia has stated that she is a non-executive director of the said broker and not in charge of the day to day functioning of the said broker and or that she was ignorant of the irregularities committed by the said broker. I am unable to accept the explanation submitted by Smt. Banthia. Being a director and holding 6.53% shares in the said broker, Smt. Banthia is liable for all the acts of omission and commission by the said broker. I note that Smt. Banthia has submitted that the enquiry proceedings have exonerated the said broker. In this regard, I have vide order dated 5.3.2004 already found the said broker to guilty and suspended their certificate of registration for a period of 12 months. In view of the above, I find that Saroj Banthia is liable for all the irregularities/violations committed by the said broker. 5.0 Order I find that Saroj Banthia as Director of the said broker has acted in such a manner that has placed the interest of investors at risk and also jeopardized the trust of investors in the safety and integrity of the securities market. I find that it is necessary in the interest of investors in the securities market to restrain persons such as Saroj Banthia from being associated with the securities market. Therefore, I, in exercise of powers conferred on me by Sections 11 (4) (b) and 11B read with Section 4(3) of the SEBI Act do hereby direct that Smt. Saroj Banthia shall disassociate herself from the securities market and that

Source: SecMarx — sebi:CO/09/ISD/06/2004. 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.