sebi:CO/81/MIRSD/11/2004

SEBI · SEBI · 2004-06-14 · 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

Warning

Provisions invoked

• s. 4(3)

Regulations

• Reg. 13(4)
• Reg. 13(2)
• Reg. 28(1)

Parties

• M/s. D. B. (International) Stock Brokers Ltd.

Holding

The Chairman warned D. B. (International) Stock Brokers Ltd. to be more cautious in future dealings in securities and to adhere to the SEBI Act, 1992 and the Rules and Regulations made thereunder. This Order shall come into effect immediately.

Full text

Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ ORDER UNDER REGULATION 13(4) OF SEBI (PROCEDURE FOR HOLDING ENQUIRY BY ENQUIRY OFFICER AND IMPOSING PENALTY) REGULATIONS, 2002 AGAINST M/S. D. B. (INTERNATIONAL) STOCK BROKERS LTD., MEMBER, NATIONAL STOCK EXCHANGE, HAVING SEBI REGISTRATION NO. INB230643233 CO/81/MIRSD/11/2004 1.0  BACKGROUND 1.1 M/s. D. B. (International) Stock Brokers Ltd. (hereinafter referred to as “the broker”) is a member, National Stock Exchange, having SEBI Registration No. INB230643233. 2.0 INSPECTION AND ENQUIRY PROCEEDINGS 2.1 Pursuant to an inspection of the books of accounts, records and other documents of the broker, an Enquiry Officer (EO) was appointed vide SEBI Order dated 29 January, 200 Regulation 28(1) of SEBI (Stock Brokers and Sub Brokers) Regulations, 1992 to enquire into the alleged contraventions observed during the inspection of books of account broker. The EO submitted his report on 10.06.04, recommending censure stating that the irregularities were of technical nature and such deficiencies/ lapses could be rectifie 2.2 The Enquiry Officer did not find the broker guilty of the violations as alleged in the inspection report such as failure to maintain duplicate copies of contract notes, failure to mainta database i.e. agreements and registration forms, dealing with unregistered sub broker and with members of other exchanges, failure to maintain necessary books of accou documents as mandated under rule 15

1.1 M/s. D. B. (International) Stock Brokers Ltd. (hereinafter referred to as “the broker”) is a member, National Stock Exchange, having SEBI Registration No. INB230643233. 2.0 INSPECTION AND ENQUIRY PROCEEDINGS 2.1 Pursuant to an inspection of the books of accounts, records and other documents of the broker, an Enquiry Officer (EO) was appointed vide SEBI Order dated 29th January, 2003 under Regulation 28(1) of SEBI (Stock Brokers and Sub Brokers) Regulations, 1992 to enquire into the alleged contraventions observed during the inspection of books of accounts of the broker. The EO submitted his report on 10.06.04, recommending censure stating that the irregularities were of technical nature and such deficiencies/ lapses could be rectified. 2.2 The Enquiry Officer did not find the broker guilty of the violations as alleged in the inspection report such as failure to maintain duplicate copies of contract notes, failure to maintain client database i.e. agreements and registration forms, dealing with unregistered sub broker and with members of other exchanges, failure to maintain necessary books of accounts and documents as mandated under rule 15 of SCR Rules, 1957, failure to prepare contract notes for sale of securities in “patawat” auction and “BDC” auction offer, Non segregation of client account from that of own account., failure to maintain client complaint register and pending client complaints etc. 2.3 The Enquiry Officer stated in the Enquiry Report that there were some

issued from time to time. Further the broker should be warned to deal his business activities in more diligent manner in future. 3.0 SHOW CAUSE NOTICE AND BROKER’S REPLY 3.1 A show cause notice dated 14.06.04 was issued to the broker in terms of Regulation 13(2) of SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing

Source: SecMarx — sebi:CO/81/MIRSD/11/2004. 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.