sebi:MO/95/MIRSD/01/06

SEBI · SEBI · 2003-03-24 · 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. 13(4)
• Reg. 5(1)
• Reg. 13(2)
• Reg. 6

Parties

• M/s Arcadia Shares & Stock Brokers Pvt Ltd

Holding

The Whole Time Member warned M/s Arcadia Shares & Stock Brokers Pvt Ltd (INB230778238), Member, National Stock Exchange, and directed it to be more cautious in future and to adhere to the provisions of SEBI Act, 1992 and the Rules and Regulations made thereunder.

Full text

Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ ORDER AGAINST M/s.ARCADIA SHARES & STOCK BROKERS PVT LTD., MEMBER – NATIONAL STOCK EXCHANGE SEBI REGISTRATION NO. INB230778238 UNDER REGULATION 13(4) OF SEBI (PROCEDURE FOR HOLDING ENQUIRY BY ENQUIRY OFFICER AND IMPOSING PENALTY) REGULATIONS, 2002. 1.0 BACK GROUND 1.1 M/s Arcadia Shares & Stock Brokers Pvt  Ltd (hereinafter referred to as the ‘broker’) is a corporate member of the National Stock Exchange, Mumbai (hereinafter referred to as and is registered with the Securities and Exchange Board of India (hereinafter referred to as ‘SEBI’) as a Stock broker under Section 12 of SEBI Act, 1992 with Registration N INB230778238 . 1.2 An Inspection of the Books of Accounts, Documents and other records maintained by the broker for the period April 1, 2001 to June/July, 2003, was carried out by M/s. K Associates, Chartered Accountants appointed by SEBI vide letter no.SMD/DBA-1/Pre-Insp/AK/5980/2003 dated March 24, 2003.  During the inspections, certain irregularitie to have been committed by the broker were observed. 2.0  ENQUIRY PROCEEDINGS  2.1            The Inspection Reports were forwarded to the broker on completion of inspection vide letter dated August 12, 2004 and an Enquiry Officer was appointed vide Order dated 24, 2004 under Regulation 5(1) of SEBI (Procedure for Holding enquiry by enquiry officer and imposing penalty) Regulations, 2002 (hereinafter referred as the ‘said regulat enquire int

referred to as ‘NSE’) and is registered with the Securities and Exchange Board of India (hereinafter referred to as ‘SEBI’) as a Stock broker under Section 12 of SEBI Act, 1992 with Registration Number INB230778238 . 1.2 An Inspection of the Books of Accounts, Documents and other records maintained by the broker for the period April 1, 2001 to June/July, 2003, was carried out by M/ s. Kochar & Associates, Chartered Accountants appointed by SEBI vide letter no.SMD/DBA-1/Pre-Insp/AK/5980/2003 dated March 24, 2003. During the inspections, certain irregularities found to have been committed by the broker were observed. 2.0 ENQUIRY PROCEEDINGS 2.1 The Inspection Reports were forwarded to the broker on completion of inspection vide letter dated August 12, 2004 and an Enquiry Officer was appointed vide Order dated August 24, 2004 under Regulation 5(1) of SEBI (Procedure for Holding enquiry by enquiry officer and imposing penalty) Regulations, 2002 (hereinafter referred as the ‘said regulations’) to enquire into the alleged irregularities committed by the broker which were observed during the inspections. 2.2 A Notice dated August 12, 2004 was issued to the broker under Regulation 6 (1) of the said regulations. The broker submitted its reply vide letters dated September 7, 2004 and September 17, 2004 and appeared for personal hearing before the Enquiry Officer on November 22, 2004. The enquiry officer conducted the enquiry in terms of the said Regulations and the broker was given a f

calling upon it to show cause as to why appropriate penalty including the penalty as recommended by the Enquiry Officer should not be imposed on it. 4.0 CONSIDERATION OF ISSUES 4.1 I have carefully considered the findings of the Inspection, Enquiry and the

Source: SecMarx — sebi:MO/95/MIRSD/01/06. 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.