sebi:WTM/GA/94/ISD/10/06

SEBI · SEBI · 1997-02-11 · G Anantharaman, Whole Time Member

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Suspension of certificate of registration for a period of fifteen days effective on expiry of 21 days from the date of order

Provisions invoked

• s. 12

Regulations

• Reg. 7
• Reg. 13(4)
• Reg. 13(2)
• Reg. 3
• Reg. 17
• Reg. 199
• Reg. 17(1)
• Reg. 17(1)(i)
• Reg. 4(a)(b)(c)

Parties

• M/s Wyscare Securities Pvt. Ltd.

Holding

M/s Wyscare Securities Pvt. Ltd., member of Bangalore Stock Exchange Ltd., violated SEBI KYC circulars, Regulation 17(1)(i) and Clauses A(1), A(2) and A(5) of the Code of Conduct in dealing in HTL shares, and its certificate of registration is suspended for fifteen days.

Full text

Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ Order against Wyscare Securities Pvt. Ltd Oct 03, 2006 | Orders : Orders of Chairman/Members WTM/GA/94/ISD/10/06 1.0 BACKGROUND 1.1 M/s Wyscare Securities Pvt. Ltd. (hereinafter referred to as the Broker) is a member of the Bangalore Stock Exchange Ltd. (hereinafter referred to as BgSE) and is registered with the Securities and Exchange Board of India (hereinafter referred to as SEBI) as a stock broker under section 12 of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as the said Act) with registration number INB 080810031. 15110 24 9 1. 2. 3. 4. 5. 6. 7. 1

6. All the above mentioned acts are in violation of Rule 4(b) of SEBI (SB & SB) Rules, 1992 and Clause A(1), A(2) and A(5) of the Code o specified in Schedule II read with Regulation 7 of SEBI (SB&SB) Regulations, 1992” . 2.3 The Broker had failed to submit any reply ro the aforesaid show cause notice and the Enquiry Officer concluded the enquiry in terms of the Regulations and inter alia had observed that the Broker had not met the client and that the Broker had not entered into the member agreement with his client. The above facts were admitted by the Broker before the investigating authority of SEBI. The Enquiry Officer had observed that there was no material to suggest that the Broker had verified the financial worthiness of his client while trading in the shares o It was also stated in the Enquiry Report that the Broker had violated provisions of regulation 17(1) (i) of the Broker Regulations. The E Officer, after taking into account certain mitigating circumstances, vide his report dated November 23, 2004 recommended to impose a

April 11, 1997. 3.8          Further, In terms of the provisions of the Broker Regulations, a stock broker, without any delay shall issue the contract note to his client a terms of regulation 17(1) (i) of the Broker Regulations, he has to maintain the counterfoils or duplicates of such contract notes. In the pr matter, the Broker had failed to submit even a single copy of acknowledgment of counterfoils of contract notes. It can be seen from the tr details, that the Broker had executed trades of significant volume in the shares of HTL on behalf his client, without any specific authoriz Despite executing such transactions, the Broker had failed to obtain the acknowledgement copy of contract notes, even in a single transact does not appear to be a simple omission and has to be viewed seriously in the background of the allegations that the orders were placed by a party without any specific authorization. Therefore, the Broker had violated the provisions of regulation 17 (1) (i) of the Broker Regulations. 3.9             In view of the above facts and circumstances, it is fairly established that the Broker had violated the SEBI circulars dated February 11, 199 April 11, 1997. Further, the Broker had also violated regulation 17(1) (i) of the Broker Regulations. In view of the above acts, it is fairly estab that the Broker had failed to maintain high standards of integrity, promptitude and fairness and failed to act with due skill , care and diligence conduct of his business while d

Source: SecMarx — sebi:WTM/GA/94/ISD/10/06. 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.