sebi:EAD-3/JS/GSS/3366/2019-20
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Facts / Headnote
Penalties imposed on the Noticee for violations of PFUTP Regulations, 2003 and Code of Conduct for Stock Brokers; total penalty of Rs. 45,00,000 payable within 45 days.
Provisions invoked
- s. 15
- s. 15H
- s. 15I
- s. 15J
- s. 15F
- s. 133A(5)
Regulations
- Reg. 3
- Reg. 2(c)
- Reg. 3(a)
- Reg. 9
- Reg. 3(b)
Parties
- Korp Securities Limited
Holding
The Noticee (Korp Securities Limited) was found to have violated Regulations 3(a)-(d) and 4(1) & 4(2)(a) of the PFUTP Regulations, 2003 and Clauses A(1), (2) & (5) of the Code of Conduct for Stock Brokers by facilitating dealings of debarred entity Beejay through connected entities DDM and DDT, and was held liable for penalties under Sections 15HA and 15HB of the SEBI Act.
Full text
Adjudication Order in respect of Korp Securities Limited || Page 2 of 18 common Director of DDM and DDT viz, Shri Rajesh Kumar Agarwal in a capacity as Brother. Also, Shri Anuj Agarwal (s/o Shri Sushil Kumar Agarwal) & Smt Meena Agarwal (w/o Shri Sushil Kumar Agarwal) was one of the directors of Anuj Realtors Pvt Ltd, who was a shareholder of DDM.
Adjudication Order in respect of Korp Securities Limited || Page 3 of 18 9. Thereafter, vide e-mail dated November 13, 2018, the Noticee further requested for adjournment of hearing time. Accordingly, vide mail dated November 13, 2018, the hearing was fixed for November 15, 2018 at 11:00 AM.
Adjudication Order in respect of Korp Securities Limited || Page 4 of 18 f. It is an admitted fact that Shri Sushil Kr. Agarwal, our erstwhile Director is the elder brother of Mr. Rajesh Kumar Agarwal, erstwhile Director of DDM & DDT. It is quite possible that they may have common interest in a venture. We submit that the same cannot be the basis of relating us to DDM & DDT as they are two separate individuals living their independent lives and shareholders and directors in different companies.
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Source: SecMarx — sebi:EAD-3/JS/GSS/3366/2019-20. 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.