sebi:MO/65/IVD/08/04

SEBI · SEBI · 2000-10-23 · A K Batra, 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

Minor penalty imposed: suspension of certificate of registration for three months

Provisions invoked

• s. 19

Regulations

• Reg. 13(4)
• Reg. 13(2)
• Reg. 17(1)
• Reg. 17(1)(k)

Parties

• M/s Sunil Investments, Member, Bangalore Stock Exchange (SEBI Regn No INB081029119)

Holding

The Whole Time Member imposed a minor penalty of suspension of the certificate of registration of M/s Sunil Investments for a period of three months for violations of SEBI circulars on margin collection, cash receipts, and order-time record keeping, and clause A(2) of Schedule II of the Stock Brokers Regulations.

Full text

Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ ORDER UNDER REGULATION 13(4) OF SEBI (PROCEDURE FOR HOLDING ENQUIRY AND IMPOSING PENALTY) REGULATIONS, 2002. AGAINST M/S SUNIL INVESTMENTS, MEMBER, BANGALORE STOCK EXCHANGE, (SEBI REGN NO INB081029119), IN THE MATTER OF PROSOFT SYSTEMS LTD.

28/12/2000 59207 44737 76% 29/12/2000 36107 24153 67% 03/01/2001 45610 15200 33% 08/01/2001 30058 22603 75% 09/01/2001 2850 2150 75% 10/01/2001 1200 1200 100% 11/01/2001 710 710 100% 12/01/2001 4000 1800 45% 15/01/2001 2740 1840 67% 16/01/2001 500 500 100 %

ii. The broker did not exercise due diligence and care when he permitted a new client to trade heavily in the scrip without paying adequate margins. iii. The broker has received payments in cash from the client which is in violation of SEBI Circular dated 18th November, 1993, as per which all receipts should be in the form of crossed cheques only. iv. Time of placement of order by the client was not captured by the broker. As per SEBI circular dated 11/2/1997, the broker should maintain record of time when the client has placed the order and reflect the same in contract notes. The said broker was not maintaining record of the time when the client had placed the order. Therefore, there is non compliance of Circular dated 11/2/1997. SHOW CAUSE NOTICE AND REPLY

Source: SecMarx — sebi:MO/65/IVD/08/04. 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.