sebi:EAD-9/SM/248/2018-19

SEBI · SEBI · 2018-08-13 · Sahil Malik, Adjudicating Officer

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Facts / Headnote

Penalty of Rs. 50,000 imposed on the Noticee under Section 15HB of the SEBI Act, 1992

Provisions invoked

• s. 15
• s. 15H
• s. 15J
• s. 15F

Regulations

• Reg. 15

Holding

The Noticee violated Clause D(c)(iv) of NSE Circular 001/2013 and Clauses A(1) and D(1) of the Code of Conduct for sub-brokers by trading in the F&O segment without Authorised Person approval, while violation of SEBI circulars dated November 06, 2009 and July 23, 2010 was not established. A penalty of Rs. 50,000 under Section 15HB was imposed.

Full text

In the matter of Inditrade Capital Ltd Page 2 of 8 Show Cause Notice, Reply and Personal Hearing: 3. 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 undelivered. An attempt was made to deliver the SCN through Inditrade and the same was duly delivered.

In the matter of Inditrade Capital Ltd Page 3 of 8 ISSUES FOR CONSIDERATION/FINDINGS: 5. I have carefully perused the reply and submissions of the Noticee and the documents available on record. The issues that arise for consideration in the present case are:

In the matter of Inditrade Capital Ltd Page 4 of 8 4. Eligibility Criteria 4.1 An individual is eligible to be appointed as authorised person if he: a) is a citizen of India; b) is not less than 18 years of age; c) has not been convicted of any offence involving fraud or dishonesty; d) has good reputation and character; e) has passed at least 10th standard or equivalent examination from an institution recognized by the Government; and f) has the certification, as applicable to approved user/sales personnel of the respective segment, and undertakes to continue to have valid certification thereafter.

Source: SecMarx — sebi:EAD-9/SM/248/2018-19. 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.