sebi:MO/183/MIRSD/02/2006

SEBI · SEBI · 2005-10-17 · 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

Provisions invoked

• s. 19
• s. 12

Regulations

• Reg. 7
• Reg. 13(4)
• Reg. 5(1)
• Reg. 13(2)

Parties

• M/s Geojit Securities Ltd. (INB010806736), Member, The Stock Exchange, Mumbai

Holding

The Whole Time Member imposed the minor penalty of censure on M/s Geojit Securities Ltd., Member, BSE, for operating trading terminals through franchisees at Malad, Cochin and Chennai in violation of SEBI Circular dated 22.10.2001 and BSE Rules.

Full text

Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ Order against M/. Geojit Securities Ltd Feb 02, 2006 | Orders : Orders of Chairman/Members MO/183/MIRSD/02/2006 SECURITIES AND EXCHANGE BOARD OF INDIA

5.1  Now, therefore, in exercise of the powers conferred upon me in terms of Section 19 of the SEBI Act, 1992 read with Regulation 13(4) of the said Regulations, I hereby censu Geojit Securities Ltd. (INB010806736), Member, The Stock Exchange, Mumbai. 5.2 This order shall come into force with immediate effect. MADHUKAR DATE :  02.2.06 SECURITIES AND EXCHANGE BOARD OF INDIA PLACE: MUMBAI WHOLE TIME MEMBER

having no adverse impact on the interest of investor or functioning of the securities market and therefore no penalty is warranted. 3.0 CONSIDERATION OF THE ENQUIRY REPORT 3.1 I have carefully considered the findings of inspection, enquiry and the submissions made by the broker and note significant points as under : a) Violation of the provisions of SEBI Circular No.SMDRP/Policy/ Cir-49/2001 dated October 22, 2001. In terms of the above circular, no stock broker shall establish its trading terminals at any place other than its registered office, branch office and at the registered office of its registered sub-brokers. It has been alleged that the broker had a branch network of around 40 branches to carry on its trading activity. The terminals of the stock broker were located at Cochin Penta Menaca, Code MM and Chennai. The broker executed agreements with the aforesaid franchisee holders which provided that there were no employees, infrastructure of the stock broker at the above places and the franchisee holders were permitted to trade in stock broking activities on behalf of the broker on profit sharing basis. The abovementioned persons acted on behalf of the broker on commission basis without registration as a Remisier of the exchange and inspite of the objection of the exchange, the broker continued to allow the above persons on its behalf on commission basis without registration with the exchange as a Remisier. Rule 216 to 235 of the Rules, bye-laws and regulations of the

Source: SecMarx — sebi:MO/183/MIRSD/02/2006. 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.