sebi:VSS/AO-102/2009
Facts / Headnote
No monetary penalty imposed; case disposed of
Provisions invoked
- s. 15
- s. 15H
- s. 15I
- s. 15J
Regulations relied on
- SEBI (Stock Brokers) Regulations, 1992
Parties
- Shriram Insight Share Brokers Ltd. (formerly Insight Share Brokers Ltd.)
Holding
Four limited violations were held established against Shriram Insight Share Brokers Ltd., but the Adjudicating Officer held it was not a fit case to impose any monetary penalty and disposed of the case without penalty.
Full text
Page 2 of 32 Ltd., a debarred entity, (d) Non collection of margin from clients, (e) Non compliance with the guidelines for margin trading (f) Non segregation of records and accounts pertaining to different segments, (g) Indulging in indirect fund based activities, (h) Inducing clients through incentives to trade for generating brokerage, (i) Non payment of corporate benefits to clients, (j) Non delivery of securities to clients, (k) Retention of credit balances of the clients and misutilisation of the balances for funding activity, (l) Allowed clients to act as unregistered sub-brokers, (m) Non redressel of investor complaints. Therefore, it was alleged that SISBL had violated the provisions of SEBI (Stock Brokers and Sub Brokers) Regulations, 1992 (hereinafter referred to as ‘Brokers Regulations’), and certain SEBI Circulars and consequently, liable for monetary penalty under sections 15C and 15HB of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as the ‘SEBI Act’).
Page 3 of 32 initiated and penalty be not imposed under sections 15C and 15HB of SEBI Act for the alleged violations committed by SISBL.
Page 4 of 32 2006. As the Noticee had issued contract notes to its clients in the new name before receipt of approval from SEBI for the change of name, it was alleged that the Noticee had carried on the business in the new name without obtaining prior approval from SEBI. Reply A few contract notes to the clients were issued in the new name before receipt of approval from SEBI. However, the instances cited in SCN had happened only in two branches, viz., Salt Lake (CK Block) and Salt Lake (AC Block) during the period from November 1, 2006 to November 10, 2006. The same was due to mis-understanding at the branch level regarding the communication sent to all our branches on the usage of new stationery consequent to change of name. The communication dated October 27, 2006 sent to all the branches clearly specified the steps to be followed regarding the usage of new stationery. Finding In order to verify the veracity of the submissions of the Noticee, it was advised to submit a copy of the said communication sent to its branches. The same was received along with the Noticee’s reply dated March 20, 2009. The contents of the said communication are as under: i “As you are aware, the company is in the process of changing the name of the company from “Insight Share Brokers Limited.” ii The final approval of SEBI is awaited shortly. The company shall use only the new stationery (letterhead, contract notes, GR etc.,) after the name change is approved by SEBI. iii To ensure smooth transiti
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:VSS/AO-102/2009. 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.