sebi:EAD/Order/KS/MG/2018-19/1561
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Facts / Headnote
Penalty imposed on the Noticee
Provisions invoked
- s. 15A
- s. 15
- s. 15H
- s. 15J
- s. 15F
Regulations
- Reg. 4
- Reg. 7
- Reg. 6
- Reg. 9(f)
- Reg. 9
- Reg. 26
- Reg. 1
- Reg. 9(b)
Parties
- Vishesh Capital Pvt. Ltd.
Holding
The Noticee, Vishesh Capital Pvt. Ltd., was found to have violated SEBI Circular No. SMD/MRD/SE/Cir-32/2003/27/08 dated August 27, 2003, Clauses A(1), A(2) & A(5) of the Code of Conduct for Stock Brokers under Schedule II of Regulation 9(f), and Regulation 9(b) of the Brokers Regulations, and a monetary penalty of Rs. 2,00,000/- was imposed under Section 15HB of the SEBI Act read with regulations 26(xv), (xvi), (xix) and (xx) of the Brokers Regulations.
Full text
Page 2 of 16 trading terminals at the premises. However, it was observed that the said location was not reported to the NSE by the Noticee as a location of its dealer’s office. It was observed from the details uploaded by the Noticee in respect of Jatin that he was a dealer operating from the address - 520, Gurukripa Building, S. V. P. Road, Opera House, Mumbai.
Page 3 of 16 Noticee had violated the provisions of (i) SEBI Circular No. SMD/MRD/SE/Cir- 32/2003/27/08 dated August 27, 2003; (ii) Clauses A(1), A(2) & A(5) of the Code of Conduct for Stock Brokers as specified under Schedule II of Regulation 9(f) of Brokers Regulations; and (iii) the provisions of regulation 9(b) of Brokers Regulations. In view of the same, SEBI initiated adjudicating proceedings against the Noticee.
Page 4 of 16 7. The SCN issued to the Noticee was sent via registered post acknowledgement due (‘RPAD’). The Noticee vide letter dated August 13, 2018 filed its reply to the SCN. The Noticee inter alia made the following submissions in the aforesaid letter- i. Our CMD Mr. Rakesh Kadakia had allowed Jatin Mehta to operate from outside our designated office only on the basis of humanitarian grounds when the latter contacted him during his travelling, without knowing that he was committing a breach of the CTCL location reporting requirements. Jatin Mehta had only told him that he would be operating from some friend's office in Borivali. He did not know where exactly Jatin Mehta was going to operate from. We did not know that he was operating from 'Gold Credit Business Centre'.
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Source: SecMarx — sebi:EAD/Order/KS/MG/2018-19/1561. 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.