sebi:MO/22/MIRSD/11/03
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Facts / Headnote
Certificate of registration of M/s Ansh Portfolio Kendra Pvt. Ltd., member, DSE suspended for a period of one month
Provisions invoked
- s. 19
- s. 12
- s. 15F
- s. 30
- s. 12(3)
- s. 29
Regulations
- Reg. 7
- Reg. 6
- Reg. 13(2)
- Reg. 13
- Reg. 17
- Reg. 17(1)
Parties
- M/s Ansh Portfolio Kendra Pvt. Ltd.
Holding
The certificate of registration of M/s Ansh Portfolio Kendra Pvt. Ltd., member DSE, is suspended for a period of one month in agreement with the Enquiry Officer's findings and recommendation.
Full text
3.4 Dealing with unregistered sub-broker 3.5 Delay in delivery of securities 4. In terms of regulation 13(2) of the said Regulations a show cause notice dated 06.08.2003 was issued to the member to show cause as to why the penalty as recommended by the Enquiry Officer should not be imposed on it. The member was advised to submit its reply, if any, within 15 days of the receipt of the show cause notice failing which it would be presumed that it has no explanation to offer. The member was also asked to intimate along with the reply whether it desired a personal hearing. The member vide letter dated 21.08.2003 replied to the said show cause notice. The member, interalia, made the following submissions to the said show cause notice: 4.1 Regarding the allegation that the member did not maintain the books of accounts (Document register) properly i.e. the register did not contain particulars (distinctive nos. etc.) of securities received and delivered by it, the member submitted that by the Enquiry Officers observation in the Enquiry Report it would appear that it was not maintaining the document register et-all, which will be an incorrect inference. Member stated that the document register including particulars of shares and securities received and delivered for demat shares (constituting bulk of transactions) was being maintained in compliance to Regulation 17 (1) (g). It stated that in case of physical securities (forming a minor quantity) also, the register was maintained, only
5. The member was given an opportunity of hearing on 15.09.2003. Shri Sunil Kumar Gupta, Shri Shankar Somani, Directors of the member and Shri Ravi Kumar Varanasi, Advocate appeared and made submissions. During the course of personal hearing the member was granted seven days time to file their written submissions. The member submitted its written submissions vide letter dated 19.9.2003 bringing out the oral
A (5): Compliance with Statutory Requirements: A stock-broker shall abide by all the provisions of the Act and the rules, regulations issued by the Government, the Board and the stock exchange from time to time as may be applicable to him. 6.2 With reference to the allegation that serial numbers were not preprinted on contract notes and Form A contract note issued for principal to principal transactions, the member submitted that "pre-printing of serial nos. in the contract notes will not serve the purpose since many a times transactions relating to a single clients for particular day may run into more than one page. In case on some of the clients, the contract note runs into scores of pages for some of the days. Pre-printing of serial no. will generate multiplicity of serial numbers for a single contract note leaving little control with the member. Further, the member stated that it is difficult for an intermediary to assess number of contract notes that will be consumed in a particular period with any degree of accuracy". A contract note is an important and basic document in the hands of the investors in evidence of transaction entered by the broker on his behalf. In any dispute with the broker it is the contract note that comes to the rescue of the investor. Therefore, any lapse with respect to contract note cannot be taken lightly. Clause (a) of section 15F of SEBI Act, 1992 prescribes penalty if broker fails to issue contract notes in the form and manner specified by the
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Source: SecMarx — sebi:MO/22/MIRSD/11/03. 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.