sebi:EAD-2/AO/44/2012
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Facts / Headnote
Penalty imposed on Noticee under Section 15 HB; charges under PFUTP Regulations not established
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 7
- Reg. 199
- Reg. 4
Parties
- DPS Shares & Securities (P) Ltd.
Holding
The Noticee was held liable for violating Clause A (1) (2) (3) (4) and (5) of the Code of Conduct under Schedule II of the SEBI (Stock Brokers and Sub-Broker) Regulation 1992 for failure to exercise due care and diligence, and a monetary penalty of Rs. 1,00,000 was imposed under Section 15 HB. The alleged violations of Regulations 4 (2)(a) and 4 (2)(n) of the PFUTP Regulations were not established beyond reasonable doubt.
Full text
Page 2 of 10 one way or the other namely Shri Ambar Dalal, Shri Amit Sehgal, Shri Ramniklal Patel, Shri Prasad Tandel, Shri Girdharbhai Vagadiya, Shri Kalpesh Babariya and Shri Mahendra Brahmbhatt. These entities trading members DPS Shares & Securities (P) Ltd. (hereinafter referred to as “the Noticee”), Action Financial Services (India) Ltd. (AFSL), Galaxy Broking Ltd. (Galaxy) and Pilot Credit Capital Ltd. (Pilot) were having a concentration of 20.77%, 19.37%, 17.15% and 5.43% respectively, in gross purchase.
Page 3 of 10 Show Cause Notice, Reply and Personal Hearing 5. The AO issued notice dated February 07, 2012 (hereinafter referred to as ‘SCN’) under Rule 4 of the Adjudicating Rules to the Noticees to show cause as to why an inquiry should not be held against it and penalty be not imposed under Sections 15 HA and HB of the SEBI Act, for its alleged violation of the provisions of Regulations 4 (2)(a) and 4 (2)(n) of the PFUTP Regulations and Regulation 7 read with Clause A (1), (2), (3), (4) and (5) of Code of Conduct specified under Schedule II of the Broker Regulations.
Page 4 of 10 SEBI [2007] 76 SCL 51 (SAT - MUM.) wherein it was inter-alia held that “…The appellants did not file any reply to the second show-cause notice. This being so, it has to be presumed that the charges alleged against them in the show-cause notice were admitted by them”. However, in order to pass a speaking order, the undersigned is going to analyse the evidence and allegations against the Noticee.
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Source: SecMarx — sebi:EAD-2/AO/44/2012. 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.