sebi:VSS/AO-22/2009
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Facts / Headnote
Alleged violations not established; matter disposed of
Provisions invoked
- s. 15A
- s. 19
- s. 15
- s. 15J
Regulations
- Reg. 7(1)
- Reg. 13
- Reg. 13(1)
- Reg. 2(1)(b)
Parties
- M/s Angel Broking Limited
Holding
The alleged violations of regulations 7(1) read with 7(2) of SAST and 13(1) of PIT by Angel Broking Limited were not established and the matter was disposed of without penalty.
Full text
Page 2 of 11 number of shares, Securities and Exchange Board of India (hereinafter referred to as “SEBI”) observed that M/s Angel Broking Limited (hereinafter referred to as “ABL” / ”Noticee”) was shown holding 2,91,282 (4.85%) and 3,05,546 (5.9%) shares respectively.
Page 3 of 11 6. The Noticee vide letter dated January 21, 2009 replied to the SCN stating, inter alia, the following: a. We maintain a separate account designated as “Client Beneficiary Account-1203320000000066” (hereinafter “Client Beneficiary Account”) in our capacity as Depository participant for retaining securities traded on behalf of our clients. Under the Member Client Agreement executed by the Clients for trading, Clients have specifically authorized us to retain their shares by maintaining a running account, instead of effecting settlement to settlement clearance, for facilitating trading operations on their behalf. The shares of the clients so retained are held in the said designated Client Beneficiary Account and used to meet their pay-in obligations in any settlement or inter-settlement or considered, at their request, as collateral margin for allowing enhanced gross exposure to them. Shares held in the said Client Beneficiary Account are transferred to their Demat Account as and when the Clients make a request to do so. Shares are retained in the said Client Beneficiary Account client wise and scrip wise and a proper system and procedure is in place for reconciliation of the securities on a daily basis. The system generates a Stock Mapping Report daily which clearly demonstrates scrip held/acquired by each Client.
Page 4 of 11 merely retaining the shares on behalf of our clients in the manner aforesaid, there is no acquisition of shares, substantial or otherwise, by us in any company. Further, we do not carry out any proprietary trading ourselves in any shares. We, therefore, humbly submit that provisions of Regulations 7(1) and 7(2) of SEBI (SAST) are not attracted in our case.
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Source: SecMarx — sebi:VSS/AO-22/2009. 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.