sebi:EAD-2/DSR/RG/PU/342/2015
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Facts / Headnote
Penalty imposed on the Noticee
Provisions invoked
- s. 15A
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 7
Parties
- Focus Shares & Securities Pvt. Ltd.
Holding
The Noticee violated the SEBI circular dated November 18, 1993 by failing to segregate client funds, not using the title 'Client Accounts', and misusing client funds, and violated Clauses A(1), A(2) and A(5) of the Code of Conduct under Schedule II read with Regulation 7 of the Broker Regulations. A total penalty of Rs. 5,00,000/- was imposed (Rs. 2,00,000 under Section 15A(c) and Rs. 3,00,000 under Section 15HB of the SEBI Act).
Full text
Page 2 of 18 the funds of the clients, thereby, not exercising due skill and care as a broker in addition to having compromised on its integrity.
Page 3 of 18 6. Thereafter, an opportunity of personal hearing was granted to the Noticee on July 04, 2014 vide hearing notice dated June 23, 2014. The Noticee, vide its letter dated July 02, 2014 and e-mail dated July 03, 2014 sought an adjournment and requested to re-schedule the hearing on any date after July 21, 2014. Accordingly, vide notice dated July 22, 2014, another opportunity of personal hearing was granted to the Noticee on August 04, 2014. However, the Noticee vide its e-mail dated August 01, 2014, sought another adjournment and requested to extend the hearing date to any date after August 07, 2014. However, the said request was not acceded to and the Noticee was advised to be present on the scheduled date. The Authorized Representatives (ARs) appeared on behalf of the Noticee and reiterated the written
Page 4 of 18 8. Before proceeding further, I would like to refer to the relevant provisions of the Broker Regulations and SEBI Circular dated November 18, 1993 which read as under:
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Source: SecMarx — sebi:EAD-2/DSR/RG/PU/342/2015. 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.