sebi:WTM/GA/45/MIRSD/1/08
Facts / Headnote
Minor penalty of censure imposed on APS Capital Services Private Limited
Provisions invoked
- s. 12
Regulations relied on
- SEBI (Stock Brokers) Regulations, 1992
Parties
- APS Capital Services Private Limited
Holding
The Whole Time Member imposed a minor penalty of censure on APS Capital Services Private Limited, Member, Pune Stock Exchange Ltd., for multiple violations of the Act, Broker Regulations and SEBI circulars.
Full text
Page 2 of 10 i) The client registration forms (for the clients added during the period April 01, 2000 to June 30, 2002) were not available with the Broker. ii) The Broker did not collect margins from some of its clients. iii) The clients did not acknowledge the duplicate of the contract notes.
Page 3 of 10 September 21, 2006 inter alia stated that the lapses which were observed during the inspection had since been rectified and therefore, the very purpose of the inspection had been carried out by it. The Broker further stated that 513 clients were registered through it at PSE Securities Ltd. and that the majority of back office functioning was taken care by the said PSE Securities Ltd. He submitted that PSE had conducted an inspection of the office of the Broker for the period October 01, 2004 to December 31, 2004 and that no violations were observed during the said inspection. The Broker added that, its main source of income, at present, was the sub brokerage received from the said PSE Securities Ltd. It added that the Rules and Regulations of SEBI were strictly being carried out by it.
Page 4 of 10 Broker and other materials available on record. The Enquiry Officer had observed certain irregularities committed by the Broker such as failure to maintain client registration forms, improper collection of margins, irregularities in the issuance of contract notes, dealings as an unregistered sub broker, improper maintenance of books of accounts, records and documents etc. The observations of the Enquiry Officer were not disputed by the Broker, either in its written reply dated September 21, 2006 or during the time of hearing. The main contention of the Broker was that the lapses which were noticed by the Inspecting Authority were subsequently rectified it. While claiming so, the Broker further requested to take a lenient view.
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Source: SecMarx — sebi:WTM/GA/45/MIRSD/1/08. 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.