sebi:VSS/AO-03/2009
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Facts / Headnote
Alleged violations not established; matter disposed of without penalty
Provisions invoked
- s. 15
- s. 15J
Regulations
- Reg. 7
- Reg. 3
Parties
- Rajendra Prasad Shah
Holding
The alleged violations of PFUTP Regulations and Brokers Regulations by the Noticee were held not established and the matter was accordingly disposed of without penalty.
Full text
Page 2 of 10 2. It was alleged that one of the brokers, Rajendra Prasad Shah, Member, CSE (hereinafter referred to as “Noticee”) violated the provisions of regulations 3, 4 (1), 4 (2) (a), (b), (e), (g), (n) and (o) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Markets) Regulations, 2003 (hereinafter referred to as “PFUTP”) and clauses A (1), (2), (3) and (4) and B (4) (a) of Code of Conduct for Stock Brokers as specified in Schedule II under Regulation 7 of SEBI (Stock Brokers and Sub Brokers) Regulations (hereinafter referred to as “Brokers Regulations”), and therefore, liable for monetary penalty under sections 15HA and 15 HB of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”).
Page 3 of 10 5. The Noticee vide letter dated June 04, 2008 replied to the SCN stating, inter alia, the following : a. All trade were made properly as per the norms and at the price as shown in terminal, all delivery has been made to the buyer and received from the entire seller. b. All trades were made as per rate reflected in C-Star (Terminal of CSEA) and souda were made as per instruction of client duly registered with us by client agreement form. I never offered any rate or make any souda as per my own price. c. All the transactions for purchase or sale of securities for clients were made in normal course of business and by request of clients. The broker never encourages sale or purchase of securities with object to generating commission or brokerage. d. I have obtained ‘Know your Client form and allotted a unique code to each Client before executing any trade, by maintaining high standard of integrity promptitude and fairness in the conduct of all his business. e. All trades were made on the basis of sale or purchase instruction given by the Client who is properly registered with broker by client agreement form and none of transaction done for other than clients. So the broker is no way making any personal gain from the particular transactions. f. All transactions were made respective codes of clients only and none of the trades were done for other then client and as per rate reflected in C-Star (Terminal of CSEA) and souda were made as per instruction of client duly reg
Page 4 of 10 September 29, 2008 was sent to the Noticee granting him an opportunity of personal hearing on October 16, 2008. Mr. Anand Kumar Tiwari, Authorized Representative, (hereinafter referred to as “AR”) appeared. During the hearing, the Noticee reiterated the
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Source: SecMarx — sebi:VSS/AO-03/2009. 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.