sebi:EAD/NP/JS/AO-1/2016
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Facts / Headnote
Violation confirmed; penalty imposed under section 15HB of the SEBI Act, 1992 (quantum not stated in excerpt)
Provisions invoked
- s. 15
- s. 15H
Regulations
- Reg. 7
- Reg. 199
- Reg. 9(f)
- Reg. 9
- Reg. 13(l)(a)(i)
Parties
- Stock broker (name not disclosed in excerpt)
Holding
The noticee stock broker failed to settle clients' running accounts (funds and securities) at least once per calendar quarter/month as required, thereby violating Clauses (A2) and (A5) of the Code of Conduct under Schedule II read with Regulation 7 (as amended, Regulation 9(f)) of the SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992 and SEBI Circulars dated December 3, 2009 and May 13, 2011, attracting penalty under section 15HB of the SEBI Act, 1992.
Full text
P a g e 2 | 26 i. Clause (A2), (A5) of the Code of Conduct as specified in Schedule II read with Regulation 7 of the SEBI (Stock Brokers and Sub Brokers) Regulations, 1992(hereinafter referred to as ‘Broker Regulations, 1992’)(after the amendment, Regulation 9(f) of the SEBI (Stock Brokers and Sub-Brokers) (second amendment) Regulations, 2013), ii. SEBI circular no. MIRSD/SE/Cir-19/2009 dated December 3, 2009, iii. SEBI circular no. MIRSD/Cir/01/2011 dated May 13, 2011
P a g e 3 | 26 5. Noticee vide email dated March 10, intimated that one of their authorized representatives, Mr Mayukh Pandya would appear before SEBI on the scheduled date of personal hearing. Vide another email dated March 15, 2016, the noticee sent scanned copy of their reply dated March 11, 2016 to the SCN and the hard copy of its reply to SCN was also submitted on March 15, 2016. Noticee during the personal hearing on March 15, 2016 relied upon its reply filed with SEBI inspection team, and reply dated March 11, 2015 to SCN, however, it was explained that the adjudication proceedings are independent of inspection proceedings and noticee requested to make another submissions.
P a g e 4 | 26 Brokers and Sub-Brokers) (second amendment) Regulations, 2013) and SEBI circular no. MIRSD/SE/Cir-19/2009 dated December 3, 2009, SEBI circular no MIRSD/Cir/01/2011 dated May 13, 2011.
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Source: SecMarx — sebi:EAD/NP/JS/AO-1/2016. 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.