sebi:MO/96/MIRSD/01/06

SEBI · SEBI · 2003-12-18 · Madhukar, Whole Time Member

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Facts / Headnote

Censure imposed on the broker under Regulation 13(4) of the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002

Provisions invoked

• s. 19
• s. 12
• s. 19(1)

Regulations

• Reg. 13(4)
• Reg. 5(1)
• Reg. 13(2)
• Reg. 6

Parties

• M/s GCM Securities Ltd

Holding

The Whole Time Member imposed a penalty of censure on M/s GCM Securities Ltd for violating Circular No. SMD/Policy/Circular/3-97 dated 31.3.97 by giving an unauthorized terminal to an unregistered sub-broker, Shri Sunil Kumar Kayan. The other charges of not filling up client member agreements, delay in delivery of scrips, and acceptance of cash from clients were found to be minor procedural lapses with satisfactory explanations.

Full text

Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ Order against M/S GCM Securities Ltd Jan 12, 2006 | Orders : Orders of Chairman/Members MO/96/MIRSD/01/06 SECURITIES AND EXCHANGE BOARD OF INDIA

1.1 M/s GCM Securities Ltd (hereinafter referred to as the ‘broker’) is a member of the National Stock Exchange (hereinafter 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 INB230793439. 1.2 SEBI conducted inspection of books of accounts, documents and other records of the said broker under section 19(1) of the SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992. During the Inspection, certain irregularities found to have been committed by the broker were observed. 2.0 APPOINTEMENT OF ENQUIRY OFFICER 2.1 Inspection Report was forwarded to the broker on completion of inspection. After considering his reply, an Enquiry Officer was appointed vide order dated 18.12.2003 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 inspection. 2.2 A Notice dated 13.2.2004 was issued to the broker under Regulation 6 (1) of the said regulations by the Enquiry Officer. The broker replied to the notice vide its letter dated 19.4.04 and sought a personal hearing. The broker was granted hearing before the enquiry officer on 7.5.04. The enquiry officer conducted the enquiry in terms of the said Regulations and the broker was given a

2.3 After considering the submissions of the broker, the Enquiry officer submitted his report dated 29.11.2004 recommending a

Source: SecMarx — sebi:MO/96/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.