sebi:SRP/RK/AO-172/2011
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Facts / Headnote
Penalty imposed on the Noticee for dealing with unregistered sub-brokers and failure to transfer corporate benefits to clients within prescribed time.
Provisions invoked
- s. 15
- s. 15H
- s. 15I
- s. 15J
- s. 23I
- s. 15F
- s. 23H
Regulations
- Reg. 7
- Reg. 18B
- Reg. 6A(1)(e)
Parties
- VSL
Holding
The Noticee was held liable for dealing with unregistered sub-brokers in violation of regulation 18B of the Brokers Regulations read with Circular No. SMD/Policy/CIR-3-97 dated March 31, 1997, and for failing to transfer corporate benefits to clients within the prescribed time in violation of Clause A(1) of the Code of Conduct read with regulation 7 of the Brokers Regulations and related SEBI circulars. A total penalty of Rs. 2,00,000 was imposed under sections 15HB and 15F of the SEBI Act.
Full text
Page 2 of 10 referred to as ‘SEBI Act’), Securities Contracts (Regulation) Act, 1956, (hereinafter referred to as ‘SC(R) Act’), Securities Contracts (Regulation) Rules, 1957 (hereinafter referred to as ‘SCRR’), SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992 (hereinafter referred to as ‘Brokers Regulations’) and certain Circulars/Directives of SEBI by the Noticee and consequently, making it liable for monetary penalty under sections 15C, 15F and 15HB of the SEBI Act and section 23H of the SC(R) Act.
Page 3 of 10 CONSIDERATION OF ISSUES AND FINDINGS 6. I have carefully perused the written and oral submission of the Noticee and the documents available on record. The charges leveled against the Noticee, its reply and my observations thereon, are as under :
Page 4 of 10 2 Anita Harlalka INS231386512 30-Aug- 2002 06.02.02 2172730 754375 2253947 3 Ardhendu Roy INS232320619 17-Nov- 2005 23.01.03 06.06.05 25633946 132927773 221038846 4 Arnab Nayek INS232820915 02-Feb- 2006 26.10.05 19.06.05 4577822 49182917 39395138 5 A Roy & Co. INS231375317 23-Jul-2002 22.03.02 08.05.02 662733375 365243969 115068408 6 Kalawati Investments & Trading (P) Ltd INS231104139 13-Jul-2001 04.04.00 03.11.00 7092273853 4937799306 6210120793 7 Lanha Enterprises INS231476214 18-Feb- 2003 16.07.02 09.01.03 1044272344 173694497 0.00 8 Mahesh Kumar Balsaria INS231050613 30-Apr-2001 01.05.97 13.02.00 297140437 33345391 146858528 9 Naresh Kumar Gupta INS230389715 02-Mar- 1998 01.09.95 05.11.97 1703959 105867 79273 10 R. B. Securities INS231466413 31-Jan-2003 20.11.02 18.11.02 0.00 5830079 88361844 11 Rajesh Kumar Khanna INS233573612 05-Apr-2007 06.03.06 20.03.06 156460 2029804 69725 12 Saswati Dutta INS231374914 23-Jul-2002 06.06.02 31.05.02 0.00 0.00 0.00 13 Shraddha Agarwal INS233573315 05-Apr-2007 01.01.05
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Source: SecMarx — sebi:SRP/RK/AO-172/2011. 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.