sebi:SD/AO/56/2009
Facts / Headnote
Disposed of - alleged violation not established, no penalty imposed
Provisions invoked
- s. 15
- s. 15H
Regulations relied on
- SEBI (Stock Brokers) Regulations, 1992 — 7A(2)
Holding
The alleged violation of the Broker Regulations by the Noticee was held not established and the matter was accordingly disposed of without penalty.
Full text
Page 2 of 5 skill, care and diligence in the conduct of its business as a stock broker and allowed a debarred entity to deal in securities. Thus, the Noticee was alleged to have violated Regulation 7A(2) of schedule II of Code of Conduct for Stock Brokers of SEBI(Stock Brokers and Sub-Brokers) Regulations, 1992 (hereinafter referred to as ‘Broker Regulations’). APPOINTMENT OF ADJUDICATING OFFICER : 4. Ms. Babita Rayudu was appointed as the Adjudicating Officer vide order of SEBI dated 4th June, 2007 under Section 15-I of the Act r/w Rule 3 of SEBI (Procedure for holding Inquiry and Imposing Penalty by Adjudicating Officer) Rules, 1995 (hereinafter referred to as the Adjudicating Rules) to inquire into and adjudge under Section 15HB of the Act, the alleged violation of the Broker Regulations .
Page 3 of 5 7. Thereafter, a notice of hearing dated February 26,2009 was issued by the undersigned by giving the Noticee an opportunity of personal hearing on March 19, 2009. On the scheduled date of hearing Mr. Aditya Bhansali Consultant, the authorized representative of the Noticee, appeared before me for the said personal hearing and made submissions. Further the Noticee also filed additional written submission. CONSIDERATION OF ISSUES AND FINDINGS : 8. Now, in this instant matter the following issues arise for consideration : a. Whether the Noticee has failed to exercise of due skill and care in the conduct of its business ? b. Whether the Noticee liable for monetary penalty for the above said alleged violation ? c. If, yes what should be the quantum of monetary penalty ?
Page 4 of 5 (5)….. ” 10. The above mentioned provision of the said code of conduct is quite clear in its import and imposes a duty on the broker to exercise due skill and care and act prudently in the conduct of all its business. The same is very essential for the protection of the interest of the securities market in general and the investors in particular.
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Source: SecMarx — sebi:SD/AO/56/2009. 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.