sebi:DSR/AO-44/2008
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Facts / Headnote
Allegations against the noticee not established; matter disposed of without penalty.
Provisions invoked
- s. 295
Regulations
- Reg. 7
- Reg. 26
Parties
- RSL
Holding
All three allegations against RSL (pledging of client securities for overdraft without reduction of debit balances, bank guarantee against client shares, and non-reporting of bulk deals to create artificial volumes) were held not established on the evidence on record.
Full text
Page 2 of 9 (b) It was also observed that RSL had pledged securities of its clients, who were having debit balances in the beneficiary owner account, with the bank and obtained overdraft facilities against the same without any consequential reduction of debit balances.
Page 3 of 9 remaining member client agreements in a week’s time which they did vide letter dated November 27, 2008. CONSIDERATION OF ISSUES AND FINDINGS THEREOF:
Page 4 of 9 295 of the Companies Act, 1956. In view of this, I find merit in the contention of the noticee. 7. Allegation No. 2 : RSL had pledged securities of its clients, who were having debit balances in the beneficiary owner account, with the bank and obtained overdraft facilities against the same without any consequential reduction of debit balances.
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Source: SecMarx — sebi:DSR/AO-44/2008. 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.