sebi:DSR/AO-42/2008
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Facts / Headnote
Noticee found guilty on Allegations 4 and 5; not guilty on Allegations 1, 2, and 3; monetary penalty of Rs. 2,00,000 imposed.
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 7
Parties
- NORTHEAST BROKING SERVICES LTD.
Holding
The Noticee was held guilty of irregularities in credit of pay outs to Broker's Beneficiary Account (Allegation 4) and irregularities in inter-exchange and inter-market fund movements (Allegation 5), but not guilty of borrowing funds from non-bank entities for margin trading (Allegation 1), irregularities in margining system (Allegation 2), or reversal of brokerage (Allegation 3). A monetary penalty of Rs. 2,00,000 was imposed under Section 15HB of the SEBI Act.
Full text
2 SCN dated June 19, 2008. Subsequently, the Noticee submitted a letter dated October 12, 2008 along with the annexures. Now, I shall proceed to examine the allegations, the reply of the Noticee and my findings thereof as under:
3 8. Allegation No.2: Whether the Noticee has committed irregularities in the maintenance of margining system in violation of provisions of SEBI Circular No.SEBI/MRD/SE/SU/Cir-15/04 dated 19th March 2004.
4 12. The company also contented that it has never been into the crisis of discharging its pay-in or pay-out obligations and all the time met its obligations without any default. Similarly, there has never been any complaint either from the investors or from the Exchange in this regard.
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Source: SecMarx — sebi:DSR/AO-42/2008. 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.