sebi:MO/184/MIRSD/02/06

SEBI · SEBI · 2002-08-06 · 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

Direction to M/s ASL Capital Holdings Pvt Ltd, Member, National Stock Exchange to be cautious in future, with immediate effect; no monetary penalty imposed

Provisions invoked

• s. 19
• s. 12

Regulations

• Reg. 13(4)
• Reg. 13(2)
• Reg. 6

Parties

• M/s ASL Capital Holdings Pvt Ltd

Holding

The Whole Time Member agreed with the Enquiry Officer's findings that no violations were established against the broker and directed M/s ASL Capital Holdings Pvt Ltd, Member, National Stock Exchange, to be cautious in future.

Full text

Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ Order against M/S.ASL Capital Holdings Pvt Ltd Feb 02, 2006 | Orders : Orders of Chairman/Members MO/184/MIRSD/02/06 SECURITIES AND EXCHANGE BOARD OF INDIA

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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 allotment of Unique Client Codes to 50 clients With regard to the above allegation, the broker submitted that the requirement as per SEBI circular dated July 18, 2001 was mandatory only in respect of clients who placed an order in excess of Rs.1 lac, which had been complied with, since these 50 clients had not traded above Rs.1 lac. The Enquiry Officer found that in the absence of any material to suggest that the broker had not allotted the UCC to every client who executed a trade for over Rs.1 lac, the reply of the broker acceptable. b) Keeping clients securities in the beneficiary account for long periods With regard to the said allegation, the broker submitted that the shares were lying in the beneficiary account with the permission of the clients. In the absence of any customer complaints and also since the broker produced copies of written letters from the said clients stating that the shares purchased were entrusted to it by them as margin for future purchases, the Enquiry Officer found the explanation of the broker acceptable. c) Failure to collect margins from clients With regard to the said allegation, the broker submitted that it had collected margin from 33 clients where the margin was required to be collected in terms of SEBI circular dated 27.7.2000 which stipulates that margi

Source: SecMarx — sebi:MO/184/MIRSD/02/06. 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.