sebi:EAD-9/SM/215/2018-19
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Facts / Headnote
Penalty imposed
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 15F
Regulations
- Reg. 26
- Reg. 9
Parties
- Inditrade Capital Ltd
Holding
The Noticee violated NSE Circular No. 287, SEBI circulars, NSE Circular 001/2013, Regulation 26(xix) and the Code of Conduct by extending F&O trading terminals to fourteen sub-brokers without prior exchange approval as Authorised Persons, and a penalty of Rs. 1,00,000 under Section 15HB of the SEBI Act was imposed.
Full text
In the matter of Inditrade Capital Ltd Page 2 of 9 Show Cause Notice, Reply and Personal Hearing: 4. Show Cause Notice dated August 13, 2018 (hereinafter referred to as ‘SCN”) was served on Noticee in terms of Rule 4 of AO Rules read with Section 15 (I) of SEBI Act, calling upon the Noticee to show cause as to why an inquiry should not be held against the Noticee for the alleged provisions of law. The SCN issued was duly delivered.
In the matter of Inditrade Capital Ltd Page 3 of 9 Personal Hearing: 6. In the interest of natural justice and in order to conduct an inquiry in terms of Rule 4(3) of the Rules, Hearing Notice was issued to Noticee on October 17, 2018 granting an opportunity of personal hearing before the undersigned on November 02, 2018. Another personal hearing was requested by the Noticee which was subsequently granted on November 20, 2018.
In the matter of Inditrade Capital Ltd Page 4 of 9 Approval for new appointment of Authorised Persons: As per the amended Regulation No. 1.3.6 of the F&O Regulations of NSEIL, Trading Members are allowed to appoint Authorised Persons who may be individuals, registered partnership firms or companies as defined under the Companies Act, 1956. The application format to seek approval for the proposed appointment of an “Authorised Person” is enclosed as Annexure A. Trading Members who are desirous of appointing an Authorised Person in the F&O Segment shall forward the completed application in the specified format by ticking on option 1, to the Membership Department at Mumbai. Such entity shall be entitled to act as an Authorised Person of the recommending Trading Member only after receiving the approval of the Exchange in writing.
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Source: SecMarx — sebi:EAD-9/SM/215/2018-19. 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.