sebi:MO/17/MIRSD/10/03
Facts / Headnote
Warning issued to the member
Provisions invoked
- s. 19
Regulations relied on
- SEBI (Enquiry & Penalty) Regulations, 2002
- SEBI (Stock Brokers) Regulations, 1992
Parties
- M/s NAM Securities Ltd.
Holding
The Whole Time Member warned M/s NAM Securities Ltd. to be careful in future and scrupulously adhere to the provisions of the SCRA, 1956, SEBI Act, 1992 and directions issued by SEBI, holding that the violations committed by the member were small and technical and that a warning would suffice rather than suspension.
Full text
notes, which had never taken place, recommending a penalty of suspension is unlawful and unjustified. b) The member submitted that the contract notes were invariably issued and acknowledged by all the clients. The member stated that the acknowledgement of the contract notes by the clients was invariably completed in due compliance to the rules and regulations of the stock exchange and SEBI. However, the Enquiry Officer had held that, non production of the contract notes led to non verification of the said submission and brokers contention is not sustainable. The member further submitted that the copies of the contract notes duly acknowledged were also produced at the time of inspection. The fact can be proved from the reference at various places made by the inspection team in their report, to the contract notes all of which bear acknowledgement from the client. c) The member submitted that the allegation that the terms and conditions as well as SEBI registration no. not mentioned on the contract note issued is wrong due to the fact that the member was using pre-printed contract note which invariably carries all the terms and conditions as well as SEBI Registration No. on the contract notes. The member further stated that there were several references at various places of the contract notes issued by it and the SEBI team found each of them in order laying full terms and conditions and SEBI Registration no.
the member would be on higher side. A warning would suffice in the present case. 8. Therefore, in exercise of the powers conferred upon me by Section 19 of SEBI Act, 1992 read with sub-regulation (4) of Regulation 13 of the said Regulations, I hereby warn M/s NAM Securities Ltd., Member, NSE to be careful in future and scrupulously adhere to the provisions of Securities Contracts (Regulation) Act, 1956 and the Rules framed thereunder, SEBI Act, 1992 and the Rules and Regulations framed thereunder and directions issued by SEBI from time to time.
5. The member was given an opportunity of hearing on 15.9.2003. Shri Ashwani Goyal, Whole Time Director of the member appeared and made submissions. During the course of the hearing the member submitted the written submissions dated 15.9.2003 reiterating its earlier submissions made by its letter dated 11.8.03 in reply to the show cause notice dated 4.7.03.
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Source: SecMarx — sebi:MO/17/MIRSD/10/03. 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.