sebi:MO/33/MIRSD/12/2005

SEBI · SEBI · 2004-11-03 · 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

warning

Provisions invoked

• s. 19
• s. 12

Regulations

• Reg. 4
• Reg. 13(4)
• Reg. 13(2)
• Reg. 5
• Reg. 13(a)(i)

Parties

• Sykes & Ray Equities (I) Ltd.

Holding

M/s Sykes & Ray Equities (I) Ltd., member, The Stock Exchange, Mumbai, was warned to be more cautious in future and directed to adhere to the provisions of the SEBI Act, 1992 and the Rules and Regulations made thereunder.

Full text

Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ ORDER UNDER REGULATION 13(4) OF SEBI (PROCEDURE FOR HOLDING ENQUIRY BY ENQUIRY OFFICER AND IMPOSING PENALTY) REGULATIONS, 2002, AGAINST SYKES & RAY EQUITIES (I) LTD., MEMBER, THE STOCK EXCHANGE, MUMBAI, SEBI REGISTRATION NO. INB010727734 1.0  BACKGROUND 1.1             Sykes & Rays Equities (I) Ltd. (hereinafter referred to as “the broker”) is a member of The Stock Exchange, Mumbai (“BSE”) registered with SEBI as a stock broker under se of SEBI Act, 1992 with SEBI Registration No.  INB010727734. 1.2                        Inspection of the books of accounts, documents and other records maintained by the broker for the period April 2000 to September 2001 was carried out by S R G Associates, Chartered Accountants, on behalf of SEBI as per letter: SMD/DBA-I/Pre-Insp./AK/14877/2002, dated August 06, 2002. Certain irregularities / contraventions of th Regulations were observed during the said inspection. A copy of the Inspection Report was sent to the broker vide SEBI letter dated November 18, 2002 and his comments thereto were received vide reply dated December 10, 2002 2.0 ENQUIRY PROCEEDINGS 2.1             An Enquiry Officer (EO) was appointed vide SEBI Order dated March 08, 2004 under Regulation 5 of SEBI (Procedure for holding enquiry by Enquiry Officer and Imposing Regulations, 2002 (hereinafter referred to as ‘said regulations’) to enquire into the alleged contraventions observed during the i

1.1 Sykes & Rays Equities (I) Ltd. (hereinafter referred to as “the broker”) is a member of The Stock Exchange, Mumbai (“BSE”) registered with SEBI as a stock broker under section 12 of SEBI Act, 1992 with SEBI Registration No. INB010727734. 1.2 Inspection of the books of accounts, documents and other records maintained by the broker for the period April 2000 to September 2001 was carried out by S R Ghedia & Associates, Chartered Accountants, on behalf of SEBI as per letter: SMD/DBA-I/Pre-Insp./AK/14877/2002, dated August 06, 2002. Certain irregularities / contraventions of the SEBI Regulations were observed during the said inspection. A copy of the Inspection Report was sent to the broker vide SEBI letter dated November 18, 2002 and his comments thereto were received vide reply dated December 10, 2002 2.0 ENQUIRY PROCEEDINGS 2.1 An Enquiry Officer (EO) was appointed vide SEBI Order dated March 08, 2004 under Regulation 5 of SEBI (Procedure for holding enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 (hereinafter referred to as ‘said regulations’) to enquire into the alleged contraventions observed during the inspection of books of accounts of the broker. The EO after conducting the enquiry in terms of the said regulations submitted his report on 28.10.04 and recommended a minor penalty of warning against the broker. 2.2 The Enquiry Officer in his report has found as under with regard to the contravention of the SEBI (Stock Brokers and Sub Brokers) Regulatio

3.0 SHOW CAUSE NOTICE AND THE BROKER’S SUBMISSIONS 3.1 A copy of the Enquiry Report was sent to the broker along with a show cause notice dated 03.11.04, in terms of regulation 13(2) of SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 (hereinafter referred to as ‘the said regulations’), advising the broker to show cause as to why the penalty as recommended by the Enquiry Officer should not be imposed. 3.2 The broker replied vide letter dated 22.11.04 and submitted as under: The alleged violations were found to be technical or procedural by the Enquiry Officer which were caused inadvertently in the course of conduct of business. They have immediately taken steps to rectify such errors. The broker further submitted that there was no loss caused to any investor or any grievance from any of the clients is received. There are no instances of any alleged violations of the Regulations by them in the past. There has been no grievance from any of their clients. There are no arbitral proceedings pending against them. 4.0 CONSIDERATION OF ISSUES 4.1 I have carefully examined the facts and circumstances of the case, the Enquiry Report and the submissions of the broker thereto. I find that adequate opportunity was given to the broker in accordance with the enquiry regulations. 4.2 The only charge that is established against the broker relates to irregularities in the issuance of contract notes that do not have pre-printed serial numbers and th

Source: SecMarx — sebi:MO/33/MIRSD/12/2005. 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.