sebi:MO/39/MIRSD/12/03
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Certificate of registration of M/s VKB Capital Services Ltd. suspended for three months, effective after 3 weeks from the date of the order.
Provisions invoked
- s. 19
- s. 12(1)
Regulations
- Reg. 7
- Reg. 199
- Reg. 6
- Reg. 13(2)
- Reg. 13
- Reg. 15
- Reg. 17
- Reg. 10
Parties
- M/s VKB Capital Services Ltd. (INB 120756233)
- Shri Vinod Kumar Bansal, Proprietor, M/s V. Bansal & Co. (SEBI Regn. No. INB 120311112)
Holding
The Whole Time Member found the member guilty of multiple violations including irregularities in books of accounts, off-the-floor transactions, dealing as an unregistered sub-broker, non-segregation of funds, delay in payment/delivery, and short payment of SEBI registration fee, and suspended the certificate of registration of M/s VKB Capital Services Ltd. for three months.
Full text
(h) Delay in payment of money and delivery of securities (i) Non Payment of full SEBI Registration fee 4. Consequent upon above, 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’) a show cause notice dated 10.07.2003 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 the member has no explanation to offer. The member was also asked to intimate along with the reply whether it desired a personal hearing. SEBI did not receive any reply to the show cause notice from the member till date. However, SEBI received a letter dated 12.7.03 from LSE stating that the SCN dated10.07.03 was handed over to the member.
17 (1) Every stock-broker shall keep and maintain the following books of accounts, records and documents namely; -. (a) ………………….. (b) …………………. (c) …………………. (d) ………………….. (e) …………………. (f) ………………….. (g) Documents register should include particulars of shares and securities received and delivered; Clause A(5) of the code of conduct for the stock brokers specifies thata 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 respect to irregularities in issuance of contract notes pertaining to pre-printed serial numbers not found on the contract notes and order time not mentioned on the contract notes, I find that the member admitted the said irregularities. Therefore, the member had violated SEBI directives issued vide Circular No.SMD/MDP/CIR/043/96 dated 5.8.96 and Circular No. SMD/POLICY/IECG/1-97 dated 11.2.97 as well as provisions of Clause A(5) of the Code of Conduct as specified in Schedule II read with Regulation 7 of SEBI (Stock brokers and sub brokers)Regulations, 1992 and directives of LSE issued vide notice dated 10.4.98. 6.3 Regarding transaction with clients on principal to principal basis, the member stated that they had only 12 transactions on principal to principal basis in the entire year. Further, the member stated that since in most of these transactions they were buyer of the shares and not the sellers as such these w
Conduct specified in Schedule II read with Regulation 7 of SEBI (Stock Brokers and Sub- Brokers) Regulations, 1992 and Circular : SMD/POLICY/CIR-3/98 dated 16.1.98. Rule 3 of SEBI (Stock Brokers and Sub Brokers) Rules, 1992 specifies as under:
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:MO/39/MIRSD/12/03. 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.