sebi:EAD-2/DSR/KM/18/2013
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Facts / Headnote
Penalty imposed on the Noticee
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 15F
Regulations
- Reg. 7
- Reg. 18B
- Reg. 12
Parties
- Page 2 of 10 Securities Limited (formerly: FMS Securities Ltd.)
Holding
The Noticee violated Regulation 18B of the Broker Regulations read with SEBI Circular No. SMD/POLICY/Cir-11/97 by knowingly dealing with Rishabh, an unregistered sub-broker, and also violated SEBI circulars on delivery/payment timelines read with the Code of Conduct for Stock Brokers. A total penalty of Rs. 10,00,000 was imposed (Rs. 5,00,000 under Section 15F and Rs. 5,00,000 under Section 15HB).
Full text
Page 2 of 10 Securities Limited (formerly: FMS Securities Ltd.) (hereinafter referred to as the ‘Noticee’) had dealt with Rishabh and M/s. PSV Enterprises (hereinafter referred to as 'PSV') who were not registered with SEBI as sub-brokers to trade on BSE. Therefore, it was alleged that the Noticee has violated the provisions of regulation 18B of the SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992 (hereinafter referred to as ‘Broker Regulations’) read with SEBI Circular No. SMD/POLICY/Cir-11/97 dated May 21, 1997 which consequently, makes the Noticee liable for monetary penalty under section 15HB of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as ‘SEBI Act’).
Page 3 of 10 as “Rules”) to inquire into and adjudge under section 15F and Section 15HB of the SEBI Act, the alleged violation of the provisions of law by the Noticee. Show Cause Notice, Reply and Personal Hearing
Page 4 of 10 dated July 16, 2012, sought for more documents and vide letter dated December 19, 2012, the documents were provided to the Noticee. The Noticee then submitted its reply to the SCN vide letter dated January 04, 2013. In order to conduct inquiry an opportunity of hearing was granted to the Noticee on February 08, 2013, vide letter dated February 04, 2013. The Noticee did not attend the hearing. Another opportunity of hearing was granted to the Noticee on February 28, 2013 vide letter dated February 13, 2013. The authorized representative of the Noticee appeared on the said date and reiterated the
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Source: SecMarx — sebi:EAD-2/DSR/KM/18/2013. 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.