sebi:Settlement_Orders_212_Order_against_M_s._Sona_M._Sheth
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Facts / Headnote
Warning imposed on the sub-broker
Provisions invoked
- s. 19
Regulations
- Reg. 13(4)
- Reg. 5
- Reg. 200
- Reg. 12(1)
Parties
- M/s. Sona M. Sheth, sub-broker, SEBI Registration No. INS231154910, Affiliated to ISE Securities & Services Ltd., Member-NSE
Holding
SEBI warned M/s. Sona M. Sheth, a sub-broker, for violating Regulation 12(1) of the SEBI (Prohibition of Insider Trading) Regulations, 1992 read with the code of conduct under Schedule II of the SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992, by not having any code of internal procedure for prevention of insider trading.
Full text
SECURITIES AND EXCHANGE BOARD OF INDIA ORDER Under Regulation 13(4) of SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002, against M/s. Sona M. Sheth, sub-broker, SEBI Registration No. INS231154910, Affiliated to ISE Securities & Services Ltd., Member-NSE Whereas, Securities and Exchange Board of India ( hereinafter referred to as SEBI ) conducted an inspection of the books of accounts and documents of M/s. Sona M. Sheth, a sub-broker, Affiliated to ISE Securities & Services Ltd., Member-NSE (hereinafter referred to as “sub-b into the alleged violations of provisions of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”), Regulations and Circulars made there under. The inspection revealed various irregularities and violations including that of default in m regulatory requirement of having written code for prevention of insider trading; and whereas, an enquiry officer was thus appointed by SEBI under Regulation 5 of SEBI (Procedure for holding enquiry by Enquiry Officer and Im
Penalty) Regulations, 2002 (hereinafter referred to as “Enquiry Regulations”) to enquire into the alleged contravention of SEBI Act, SEBI Brokers & Sub-Brokers) Regulations, 1992 (hereinafter referred to as “Broker Regulations”), SEBI (Stock Brokers & Sub-Brokers) Rules (hereinafter referred to as “Broker Rules”), SEBI (Prohibition of Insider Trading) Regulations, 1992, SEBI Circulars and Bye-laws, Business & Regulations of the Stock Exchange; and whereas, the Enquiry Officer after conducting the enquiry in terms of the Enquiry Regulations and while finding that in the facts and circums of the case and the reply by the sub broker, albeit the other charges against the sub broker can not sustain, concluded that the sub broker having any code of internal procedure for prevention of insider trading is guilty of violating the provisions of Regulation 12(1) of SEBI (Proh of Insider Trading) Regulations, 1992 read with code of conduct prescribed under Schedule II of SEBI (Stock Brokers and Sub-Br Regulations, 1992 and therefore recommended a minor penalty of warning against sub broker vide his Enquiry Report dated November 29, and whereas, a copy of the said Enquiry Report was forwarded to the sub broker along with a show cause notice dated December 14, 2004 adv to show cause as to why the appropriate penalty including penalty as recommended by the Enquiry Officer should not be imposed on him; an whereas, the sub broker replied to the said show cause notice vide its letter dated De
Order against M/s. Sona M. Sheth
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Source: SecMarx — sebi:Settlement_Orders_212_Order_against_M_s._Sona_M._Sheth. 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.