sebi:MO/28/MIRSD/06/06

SEBI · SEBI · 2003-11-13 · T. C. Nair, Whole Time Member

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Facts / Headnote

Certificate of Registration suspended for one month

Provisions invoked

• s. 19
• s. 12(1)
• s. 12

Regulations

• Reg. 7
• Reg. 13(4)
• Reg. 13(2)
• Reg. 5
• Reg. 17

Parties

• Shri Suresh Kumar Almal

Holding

The Whole Time Member held Shri Suresh Kumar Almal guilty of violating Section 12(1) of the SEBI Act, 1992 (dealing as unregistered sub-broker), SEBI Circular No.SMD/POLICY/IECG/1-97 dated February 11, 1997 and Regulation 17(1)(k) of the SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992 (non-issuance of contract notes), and suspended his Certificate of Registration for a period of one month.

Full text

Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ Order against Shri Suresh Kumar Almal Jun 29, 2006 | Orders : Orders of Chairman/Members MO/28/MIRSD/06/06 SECURITIES AND EXCHANGE BOARD OF INDIA

1.1 Shri Suresh Kumar Almal (hereinafter referred to as SKA) is a member of Calcutta Stock Exchange registered with SEBI as a stock broker having registration no. INB030071816. 1.2 Securities and Exchange Board of India (hereinafter referred to as SEBI) conducted an inspection of the books of accounts and other documents of SKA for the financial year 2001-2002 and observed following irregularities allegedly committed by the broker: (a) Non-maintenance of Order book (b) Non-maintenance of Margin Deposit Book (c) Non-issuance of contract notes to some clients (d) Not filling up client member agreement and client registration forms properly (e) Dealing as unregistered sub-broker (f) Non-segregation of clients funds from own funds. 2.0 Appointment of the Enquiry Officer 2.1 Thus, SEBI vide order dated November 13, 2003 appointed an Enquiry Officer under Regulation 5 of SEBI (Procedure for holding Enquiry by Enquiry Officer and Imposing penalty) Regulations, 2002 (hereinafter referred to as Enquiry Regulations) to enquire into the violations by SKA, if any, of a) Section 12 of the SEBI Act, 1992, b) Regulation 7 read with Code of conduct as specified in Schedule II of SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992, c) Regulation 17 (1) (k) of SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992,

d) SEBI Circular No. SMD/SED/Cir/93/23321 dated November 18, 1993, e) SEBI Circular No.SMD/POLICY/IECG/1-97 dated February 11, 1997, f) SEBI Circular No.SMD/Policy/Circular/3-97 dated March 31, 1997, g) SEBI Circular No.Sub-broker/Cir/02/2001 dated January 15, 2001, h) Bye-laws, Business rules and regulations of the Stock Exchange. 2.2 The Enquiry Officer after conducting the Enquiry in terms of the Enquiry Regulations found that SKA has violated the provisions of Section 12 of SEBI Act, 1992, Regulation 17 (1) (k) of SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992 and the SEBI Circulars No. SMD/SED/Cir/93/23321 dated November 18, 1993 and SMD/POLICY/IECG/1-97 dated February 11, 1997 and submitted his Enquiry Report dated September 28, 2004, recommending a minor penalty of suspension of the Certificate of Registration of SKA for a period of one month. 3.0 Show Cause Notice, personal hearing and reply of SKA 3.1 In terms of Regulation 13(2) of the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing penalty) Regulations, 2002, a copy of the said Enquiry Report was forwarded to the broker along with a Show Cause Notice dated October 01, 2004 advising him to show cause as to why appropriate penalty including the

Source: SecMarx — sebi:MO/28/MIRSD/06/06. 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.