sebi:Mo/27/IVD/06/06
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Direction to be careful in future and exercise due care and diligence; one-month suspension recommended by Enquiry Officer not imposed
Provisions invoked
- s. 19
Regulations
- Reg. 7
- Reg. 13(4)
- Reg. 13
Parties
- M/s. K & A Securities Pvt. Ltd.
Holding
M/s. K & A Securities Pvt. Ltd. was directed to be careful in future and exercise due care and diligence as a capital market intermediary, with a warning that future violations will be dealt with stringently, instead of the recommended one-month suspension.
Full text
Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ Order under Regulation 13(4) of SEBI (Procedure for Holding Inquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 against M/s. K & A Securities Pvt. Ltd., Member, The National Stock Exchange, in the matter of Morepen Laboratories Ltd.
within a span of seconds. In the instant case, as the trades have been squared off immediately, such transactions cause suspicion and the member is bound to exercise ca such cases. b. Further, the member has stated that when they became aware of these transactions, they had asked the client to stop trading atleast in the scrip of MLL. But these tran have been repeatedly executed for a month before which the member became aware of them. In reply to a question posed during the personal hearing KAS, in the ma stated that the delay in taking steps to stop trading was because he was out of station till 22 of July 1999. Such negligence on the part of the trading member for long p exercise due skill, care and diligence cannot be ignored. c. As per SEBI circular dated 31.03.1997, all brokers should ensure that none of their clients deals as unregistered sub-broker. In the instant case, Prajay Investment who ente KAS a member constituent agreement had dealt as unregistered sub-broker by allowing KN traders to deal through them. Hence, I am constrained to believe that KAS has taking due care and diligence and has allowed Prajay Investment to deal as an unregistered sub-broker. d. I find that KAS has violated the provisions of Clause A-2 of the Code of Conduct for stock brokers specified in Schedule II read with Regulation 7 of SEBI (Stock Brokers a brokers) Rules and Regulations, 1992.
29/10/2025, 15:15 about:blank about:blank 3/3 12. The enquiry report has concluded that the member had traded in the scrip of MLL through an unregistered sub-broker, Prajay. I have perused the Member Client Agreement entered into between KASPL and Prajay. I have also noted the
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Source: SecMarx — sebi:Mo/27/IVD/06/06. 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.