sebi:CO/29/SMD/05/2003

SEBI · SEBI · 2002-07-19 · G.N. Bajpai, Chairman, Securities and Exchange Board of India

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Facts / Headnote

Certificate of registration no. INB 10933034 of M/s Surinder Securities Pvt. Ltd. suspended for a period of four months, effective after three weeks from the date of the order.

Provisions invoked

• s. 11
• s. 16

Regulations

• Reg. 7
• Reg. 13(2)
• Reg. 13
• Reg. 5
• Reg. 6(1)
• Reg. 2
• Reg. 15(b)
• Reg. 28
• Reg. 19(1)
• Reg. 10(1)

Parties

• M/s Surinder Securities Pvt. Limited

Holding

The Chairman of SEBI held M/s Surinder Securities Pvt. Ltd. guilty of violating the Code of Conduct (Clauses A(5) and B(2)) under Schedule II read with Regulation 7 of the SEBI (Stock Brokers and Sub-brokers) Regulations, 1992, Rule 4(b) of the SEBI (Stock Brokers and Sub Brokers) Rules, 1992, Section 16(2) of the SC(R)A, and SEBI circulars and UPSE bye-laws, and ordered suspension of its certificate of registration for four months.

Full text

Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ Order Under Regulation 13 (4) Read With Regulation 13 (6) Of SEBI (Procedure For Holding Enquiry By Enquiry Officer And Imposing Penalty) Regulations, 2002 In The Matter Of M/S Surinder Securities Pvt. Limited  SEBI | Order Under Regulation 13 (4) Read With Regulation 13 (6) Of... https://www.sebi.gov.in/enforcement/orders/may-2003/order-under-regu... 1 of 5 21-10-2025, 12:53

1.1 During inspection of the books of account, records and other documents of the said broker undertaken by SEBI for the period 1st April, 1999 to 28th February 2001 conducted on 16th March, 2001 under regulation 19(1) of the SEBI (Stock Brokers and Sub Brokers) Regulations, 1992(hereinafter referred to as ‘ the said Regulations’) following violations were observed :- The said broker had executed certain transactions on behalf of the clients namely, Manish Dubey, Ram Kumar, Shyam Rawat and Abhayajeet Sharma for which no contract note was issued and only bills for the difference were issued. The said broker had not charged brokerage for the transactions mentioned in the inspection report For the transactions with Clients for the year 1999-2000, the said broker had not obtained Client Registration forms and Member – Client Agreement. The said broker had not operated the separate clients’ account though it was opened (in Punjab National Bank at Kanpur) and thus not maintained segregation of funds between members and clients’ account. The said broker did not pay the turnover fee for the years 1996-97, 1998-99 and 1999-2000 and for the years 1995-96 and 1997-98, there was a delay in the payment of fees which is in violation of Rule 4(d) of SEBI (Stock Brokers and Sub- Brokers) Rules, 1992 and Schedule III as specified under Regulation 10(1) of the said Regulations. Payable for the year Turnover * (in lacs) Amount paid Due Date Date of remittance 1995-96 - (1996-97) 5000 1.10.95 27

business and they have to do so because either they are Government Officers or very close to them. Therefore, it is not the irregularity deliberately made. As regards non payment of registration fees it is stated that it had got a stay from the Court regarding payment of turnover fees and would deposit the fees after decision of the Court. 3.1I proceed in the matter taking into account the findings and recommendations of the enquiry officer as contained in the enquiry report, the submissions of the said broker as recorded by the enquiry officer in the Enquiry Report, the reply dated 4.4.2003 of the said broker and the relevant material available on record. 4.0 Findings – 4.1 My findings are as under:- i) NON ISSUANCE OF CONTRACT NOTES The Enquiry Officer has concluded that the said broker was not issuing the contract note in the manner specified by SEBI. Contract notes is a primary document evidencing the contract between the parties. In the absence of a proper contract note, the client does not have any recourse in law to enforce the obligations arising out of the transaction. There would be difficulties in resolving the disputes in the absence of a valid contract note or for reference of dispute to the arbitration by the stock exchange. The difference bills issued by the member are not a substitute for a valid contract note which contains important features like pre-printed serial numbers, time stamping of orders showing the time of placement of order and time of execution

Source: SecMarx — sebi:CO/29/SMD/05/2003. 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.