sebi:CO/153/MIRSD/02/2005
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Facts / Headnote
Directions issued to Uttar Pradesh Stock Exchange Association Ltd. to suspend 14 members for periods ranging from 1 year to 3 years, and to make inquiries against other members including counterparty members.
Provisions invoked
- s. 6(3)
Holding
SEBI directed the Uttar Pradesh Stock Exchange Association Ltd. to suspend 14 member brokers for periods of 1 to 3 years for engaging in illegal and unauthorised carry forward transactions in securities, and further directed the exchange to inquire into other members including counterparty members.
Full text
Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ DIRECTIONS UNDER RULE 11 OF SECURITIES CONTRACT (REGULATION) RULES, 1957 TO UTTAR PRADESH STOCK EXCHANGE ASSOCIATION LTD. IN THE MATTER OF ILLEGAL AND UNAUTHORISED CARRY FORWARD TRANSACTIONS IN SECURITIES BY ITS MEMBERS 1.0 During the inspection of the Uttar Pradesh Stock Exchange Association Limited (hereinafter referred to as the UPSE) conducted by SEBI from November 08, 2001 to Novemb 2001, it was observed that the following 14 members of UPSE were involved in illegal and unauthorised carry forward transactions in securities in violation of SEBI Circula SMD/POLICY/CIR-33/2001 dated June 21, 2001: Sr. No. Name of the Broker Trade Name SEBI Registration No.
8.0 It is further observed that in the following 6 cases the brokers had repeated this type of illegal and unauthorised carry forward transactions in securities despite being pun earlier as under: 8.1 Shri Prashant Jain had been suspended for a period of 3 months or till payment of fees whichever is later with effect from 27.05.2002. 8.2 Shri Sandeep Mital was suspended for 2 months or till payment of fees whichever is later with effect from 04.03.2002. 8.3 Shri Manjeet Singh Sethi was suspended for 2 months with effect from 27.01.99 to 26.03.99. 8.4 Shri Deep Kumar Agarwal – the enquiry officer has recommended a penalty of suspension of registration for one year. 8.5 M/s. Hanupriya Securities Pvt. Ltd. Was suspended for two months with effect from 27.01.1999 to 26.03.1999 8.6 Shri Vinod Kumar (M/s. Vinod Kumar & Co.) was suspended for two months with effect from 30.03.99 to 29.05.99. 9.0 DIRECTIONS: 9.1 The conduct of the aforesaid members in carrying out illegal and unauthorised carry forward transactions in securities is detrimental to the safety and integrity of the ca and prejudicially affects the interest of investors. 9.2 Now, therefore, in exercise of provisions conferred vide Section 6(3)(b) of Securities Contracts (Regulation) Act, 1956 read with Rule 11 of Securities Contracts (Regu 1957, I hereby direct the Uttar Pradesh Stock Exchange Association Ltd. to suspend the following 14 members for the period as
2.0 Being satisfied that it is in the interests of the trade and public, the SEBI in exercise of the powers conferred upon it by clause (b) of sub-section (3) of section 6 of the Securities Contracts (Regulation) Act, 1956 appointed the Inquiry Authority for making an inquiry under the said section into the affairs of the 14 member brokers of the UPSE for the alleged illegal carry forward of transactions at UPSE vide an
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Source: SecMarx — sebi:CO/153/MIRSD/02/2005. 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.