sebi:VSS/AO-50/2008
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Facts / Headnote
Penalty imposed
Provisions invoked
- s. 15A
- s. 15
- s. 15H
- s. 15J
- s. 15C
Regulations
- Reg. 15
- Reg. 17(1)
- Reg. 26
- Reg. 26(v)
- Reg. 17(I)
Parties
- LSPL
Holding
LSPL violated regulations 17(1), 26(iii), 26(iv), 26(v), 26(vi) and 26(xvi), related Code of Conduct, rule 5(1)(b) and circulars, and is liable for penalty under sections 15A(c), 15C and 15HB of SEBI Act totaling Rs.4,00,000.
Full text
Page 2 of 17 confirmation memos to clients and (e) failed to exercise due diligence, skill and care in conducting sub-broking activities.
Page 3 of 17 SHOW CAUSE NOTICE, HEARING AND REPLY 6. Show Cause Notice No. EAD/EAD-5/PG/85021/2007 dated January 23, 2007 (hereinafter referred to as “SCN”) was issued to the Noticee under rule 4(1) of the Rules to show cause as to why an inquiry should not be held against the Noticee and penalty be not imposed on the Noticee under sections 15A(c), 15C, 15F and 15HB of SEBI Act for the alleged violation specified in the said SCN.
Page 4 of 17 c. All the investor grievances came after suspension of trading activities in July 2004 and much more after Mr. Sunil Sharma absconded on August 14, 2004. I have made all possible efforts to resolve investor complaints. d. As per SEBI’s directions one escrow account (A/c. No. 12013700- 00047401) was opened by Renaissance Securities Ltd. (hereinafter referred to as ‘RSL’) and all the LSPL pool account deliveries worth more than Rs.20 lakhs was taken by RSL in August 2005 for settlement of the claims. e. Contract notes were issued regularly to all clients till rolling settlement was introduced, after that daily bills were issued. f. LSPL is defunct since July 2004 and SEBI registration certificate was also surrendered in August 2004.
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Source: SecMarx — sebi:VSS/AO-50/2008. 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.