sebi:EAD-2/AO/71/2012
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Facts / Headnote
Penalty imposed under Section 15HB of the SEBI Act
Provisions invoked
- s. 15
- s. 12
- s. 15H
- s. 15J
Regulations
- Reg. 11
Holding
The Noticee acted as an un-registered sub-broker in violation of section 12(1) of the SEBI Act and regulation 11(1) of the Broker Regulations and was held liable for monetary penalty under section 15HB. A penalty of Rs 2,00,000 was imposed on the Noticee.
Full text
Page 2 of 8 3. SEBI has, therefore, initiated adjudication proceedings under the Securities and Exchange Board of India Act, 1992 (hereinafter referred as the ‘SEBI Act’) against the Noticee to inquire into and adjudge the alleged violations of the provisions of section 12 (1) of the SEBI Act and regulation 11 (1) of the SEBI Stock Brokers and Sub-Brokers) Regulations, 1992 (hereinafter referred to as ‘Broker Regulations’).
Page 3 of 8 2469/2011 dated October 19, 2011. In the interest of natural justice and in order to conduct an inquiry as per Rule 4 (3) of the Adjudication Rules, the erstwhile AO vide letter dated November 02, 2011 granted an opportunity of personal hearing to the Noticee on November 25, 2011. Mr. Parasmal Jain, Director of the Noticee attended the hearing and made oral
Page 4 of 8 SEBI Act Registration of stock brokers, sub-brokers, share transfer agents, etc. 12. (1) No stock-broker, sub- broker, share transfer agent, banker to an issue, trustee of trust deed, registrar to an issue, merchant banker, underwriter, portfolio manager, investment adviser and such other intermediary who may be associated with securities market shall buy, sell or deal in securities except under, and in accordance with, the conditions of a certificate of registration obtained from the Board in accordance with the regulations made under this Act.
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Source: SecMarx — sebi:EAD-2/AO/71/2012. 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.