sebi:RA/DPS/382-383/2018

SEBI · SEBI · 2004-01-13 · Rachna Anand, Adjudicating Officer

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Facts / Headnote

Violations established against Noticee No. 1 (cash transactions, terminal location, brokerage sharing) and Noticee No. 2 (allowing unauthorized terminal locations); allegation under SEBI Circular SEBI/MIRSD//Cir-06/2004 not established; monetary penalty imposed under section 15HB of SEBI Act

Provisions invoked

• s. 15
• s. 15H
• s. 15J

Regulations

• Reg. 15
• Reg. 9
• Reg. 26

Parties

• M/s Agrahar Securities Pvt. Ltd.
• M/s BgSE Financials Ltd.

Holding

The Adjudicating Officer held Noticee No. 1 (sub-broker) liable for violating SEBI Circular dated August 27, 2003 (cash transactions) and SEBI Circular dated October 22, 2001 (terminal locations and brokerage sharing), and Noticee No. 2 (stock broker) liable for violating SEBI Circular dated August 22, 2003 (allowing unauthorized terminal locations), while the allegation under SEBI Circular dated January 13, 2004 (dealing with another broker/sub-broker of same exchange) was not established. A monetary penalty was imposed under section 15HB of the SEBI Act.

Full text

Adjudication Order in respect of i) M/s Agrahar Securities Pvt. Ltd. and ii) M/s BgSE Financials Ltd Page 2 of 30 dated January 13, 2004 read with clause A(1) and D(1) of code of conduct prescribed for the sub-brokers as stipulated in Schedule II under regulation 15 of SEBI (Stock Brokers and Sub Brokers) Regulations, 1992 (hereinafter referred to as ‘Stock Brokers Regulations’) read with regulation 26(xx) of Stock Brokers Regulations. And Noticee No. 2 for the alleged violations of SEBI Circular No. SEBI/MRD/SE/15958/2003 dated August 22, 2003 and SEBI/MIRSD//Cir-06/2004 dated January 13, 2004 read with clause A(5) of code of conduct prescribed for the Stock Brokers as stipulated in Schedule II under regulation 9 read with regulation 26(xx) of Stock Brokers Regulations. APPOINTMENT OF ADJUDICATING OFFICER

Adjudication Order in respect of i) M/s Agrahar Securities Pvt. Ltd. and ii) M/s BgSE Financials Ltd Page 3 of 30 Annexure 2 of the SCN. The details of alleged irregularities / violations by the Noticee are mentioned below:

Adjudication Order in respect of i) M/s Agrahar Securities Pvt. Ltd. and ii) M/s BgSE Financials Ltd Page 4 of 30 9. During inspection Noticee No. 1 regarding the nature of receipt of such cash deposits and the details of remitters of such sums, the Noticee No. 1, vide letter dated 30.10.2014 has stated that as per the balance sheet dated March 31, 2014 of the company, the company had cash balance of Rs.13.33 lakhs and all cash deposits are basically deposits of surplus cash in hand from time to time and no other intent may be ascribed and therefore the purpose of such transactions with documentary evidence cannot be given.

Source: SecMarx — sebi:RA/DPS/382-383/2018. 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.