sebi:MO/110/MIRSD/01/06

SEBI · SEBI · 2004-03-10 · Madhukar, Whole Time Member

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Censure imposed on the broker

Provisions invoked

Regulations

Parties

Holding

The Whole Time Member censured M/s. Fortune Equity Brokers (India) Ltd. for violation of Regulation 7 of the SEBI (Stock Brokers and Sub Brokers) Regulations, 1992 by failing to issue signed contract notes to clients. The remaining charges of non-maintenance of clients' database/order book, non-delivery of securities, non-segregation of client/own funds, and dealing with unregistered sub-brokers were not made out.

Full text

Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ ORDER AGAINST M/s.FORTUNE EQUITY BROKERS (INDIA) LTD., MEMBER - NATIONAL STOCK EXCHANGE, MUMBAI, SEBI REGISTRATION NO. INB230653830 UNDER REGULATION 13(4) OF SEBI (PROCEDURE FOR HOLDING ENQUIRY BY ENQUIRY OFFICER AND IMPOSING PENALTY) REGULATIONS, 2002. 1.0 BACK GROUND 1.1 M/s Fortune Equity Brokers (India) Ltd (hereinafter referred to as the ‘broker’) is a member of National Stock Stock Exchange, (hereinafter referred to as ‘NSE’) and is register the Securities and Exchange Board of India (hereinafter referred to as ‘SEBI’) as a Stock broker under Section 12 of SEBI Act, 1992 with Registration Number INB230653830 1.2 An Inspection of the Books of Accounts, Documents and other records maintained by the broker for the period April 2000 to August 2002, was carried out by M/s. Jain & Jain, Ch Accountants appointed by SEBI vide letter no.SMD/DBA-1/Pre-Insp/AK/14877/2002 dated August 6, 2002. During the inspection, certain irregularities found to have been co by the broker were observed. 2.0  ENQUIRY PROCEEDINGS  2.1      The Inspection Report was forwarded to the broker on completion of inspection. After considering the broker’s reply dated December 20, 2002 an Enquiry Officer was appoin

DATE :13-1-2006 MADHUKAR PLACE : MUMBAI WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA 30/10/2025, 13:00 about:blank about:blank 2/2

4.0 CONSIDERATION OF ISSUES 4.1 I have carefully considered the findings of the Inspection, Enquiry and the submissions made by the broker and note significant points, as under : 4.2 a) Non-maintenance of clients’ database / order book The broker submitted that in the online trading system, orders were received over phone and verbal confirmations were given to the clients on execution followed with printed contracts at the end of the day, which are acknowledged by the client and further that it maintained the order log generated by the exchange. However, it did not maintain a separate manual order book for each order received from client which is now made optional by NSE vide its circular dated October 17,

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Source: SecMarx — sebi:MO/110/MIRSD/01/06. 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.