sebi:WTM/GA/47/MIRSD/1/08
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Facts / Headnote
Minor penalty of censure imposed on the stock broker
Regulations
- Reg. 13(4)
- Reg. 21
- Reg. 17(1)
Parties
- Premier Shares Ltd. (Registration number INB 230885730)
Holding
SEBI imposed a minor penalty of censure on Premier Shares Ltd. for violating the Act, Broker Regulations and various SEBI circulars, including failures relating to contract notes, client agreements, margin collection, unique client codes, separate bank accounts, and production of statutory records.
Full text
Page 2 of 7 vide letter dated February 20, 2003 submitted its reply to the said inspection report. Thereafter, an Enquiry Officer was appointed by SEBI vide order dated December 04, 2003 read with the subsequent order dated September 30, 2004 under the provisions of Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 (for short, Enquiry Regulations) to enquire into the alleged irregularities (as observed during the inspection) committed by the Broker. The Enquiry Officer, thereafter, vide report dated December 28, 2004 recommended to impose a minor penalty of suspension of certificate of registration of the Broker for a period of one month. 3.1 Pursuant to the submission of the Enquiry Report, a notice dated January 4, 2005 was issued to the Broker, in terms of provisions of the Enquiry Regulations calling upon it to show cause as to why appropriate
Page 3 of 7 violations such as, non submission of books of accounts to the inspecting authority, irregularities in issuing contract notes, failure to use unique client code etc. In respect of contract notes, the Enquiry Officer noticed various deficiencies. Some of the deficiencies were delay in issuance of contract note, non maintenance of duplicate of contract notes etc. SEBI vide circular dated August 05, 1996 inter alia advised that serious view would be taken in case a stock broker was found to be responsible for certain deficiencies as stated therein. Some of such deficiencies specified in terms of said circular (related to contract notes) are the following :
Page 4 of 7 standards of promptitude and fairness while conducting his business. Therefore, in the facts and circumstances, it is fairly established that the Broker had violated regulation 17(1) (i) of the Broker Regulations read with SEBI circular dated August 5, 1996.
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Source: SecMarx — sebi:WTM/GA/47/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.