sebi:PB/AO-4/2011
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Facts / Headnote
Allegation not established; matter disposed of
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 7
- Reg. 199
Holding
The alleged violation of clause A(2) of the Code of Conduct as laid down in Schedule II under Regulation 7 of the Brokers Regulations does not stand established, and the matter is disposed of without imposing any penalty.
Full text
Page 2 of 9 APPOINTMENT OF ADJUDICATING OFFICER 4. The undersigned has been appointed as Adjudicating Officer vide order dated December 15, 2009 under section 15 I of the SEBI Act read with rule 3 of the SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as ‘Rules’) to inquire into and adjudge the alleged violations of provisions of the Brokers Regulations.
Page 3 of 9 Hence, the said allegation of not taking due diligence and care as per the code of conduct is ought to be dropped against the Noticee.
Page 4 of 9 suffered due to such inadvertent error which are technical in nature and which are sometimes beyond the control of human being and in fact to err is human. Further, there is no justification for allegedly charging the Noticee for failure of due diligence and care. Further, merely for the reason of client registration form was not filled up properly can not be treated as serious violation as the deficiency or defect can be cured and which have been already done by the Noticee. Further, the dealings of the clients are independent and delivery based and therefore to draw any inference about alleged manipulation is incorrect and the charge ought to be dropped against the Noticee.
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Source: SecMarx — sebi:PB/AO-4/2011. 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.