sebi:MO/118/MIRSD/01/06

SEBI · SEBI · 2004-01-07 · Madhukar, Whole Time Member

Reviewed by Varun Matlani, Advocate — Securities Lawyer practicing in SAT and SEBI

Facts / Headnote

Minor penalty of warning imposed

Provisions invoked

• s. 19
• s. 12

Regulations relied on

• SEBI (Enquiry & Penalty) Regulations, 2002

Parties

• M/s. Growever Investments Pvt. Ltd.

Holding

In exercise of powers under Section 19 of SEBI Act, 1992 read with Regulation 13(4) of the said Regulations, a minor penalty of warning was imposed on M/s Growever Investments Pvt. Ltd. (INB110780838), member Pune Stock Exchange, with immediate effect.

Full text

Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ ORDER AGAINST M/S. GROWEVER INVESTMENTS PVT. LTD., MEMBER   PUNE STOCK EXCHANGE, SEBI REGISTRATION NO. INB110780838 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 Growever Investments Pvt. Ltd (hereinafter referred to as the ‘broker’) is a member of the Pune Stock Exchange (hereinafter referred to as ‘PSE’) and is registered w 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 INB110780838.. 1.2   An Inspection of the Books of Accounts, Documents and other records maintained by the broker was carried out by M/s. Yardi Prabhu & Associates, Chartered Accou appointed by SEBI for the period 1.4.2000 to 30.11.2002. During the Inspection, certain irregularities found to have been committed by the broker were observed. 2.0 APPOINTEMENT OF ENQUIRY OFFICER 2.1 Inspection Report was forwarded to the broker on completion of inspection. After considering his reply, an Enquiry Officer was appointed vide order dated 07.1.2004 under Reg 5(1) of SEBI (Procedure for Holding enquiry by enquiry officer and imposing penalty) Regulations, 2002 (hereinafter referred as the ‘said regulations’) to enquire into the irregularities committed by the broker which were observed during the inspection. 2.2 A Notice dated 25.5.

30/10/2025, 13:00 about:blank about:blank 2/2 submissions.

2.3 After considering the submissions of the broker, the Enquiry officer submitted his report dated 18.11.2004 recommending a minor penalty of ‘warning on the said broker. 3.0 CONSIDERATION OF THE ENQUIRY REPORT 3.1 Based upon the Enquiry report and recommendation of the Enquiry Officer, a Show Cause notice dated 23.12.2004 under regulation 13(2) of the said Regulations was issued to the broker enclosing therewith a copy of the Enquiry Report. The broker submitted its reply vide letter dated 25.1.2005. 3.2 I have carefully considered the findings of the Inspection, Enquiry and the submissions made by the broker, and note significant points, as under : a) It has been alleged that the broker had deposited certain client’s cheques in its own account. The broker admitted that it had deposited certain client cheques in its own account and submitted that from 1.4.02 it had strictly followed bifurcation of client’s account and its own account. The enquiry officer has observed that the inspection report does not mention of any client’s complaint regarding misuse of their money. Hence, he recommended for a benefit of doubt to the broker with a warning not to indulge in such practices in future and conduct their business in strict compliance with SEBI Regulations and guidelines. b) With regard to other charges like deficiencies in the maintenance of books of accounts and other records, non- collection of margin money from all clients, deficiencies in maintenance of client database by t

Source: SecMarx — sebi:MO/118/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.