sebi:WTM/KMA/ERO/IVD/220/02/2010
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Facts / Headnote
Censure
Provisions invoked
- s. 19
Regulations
- Reg. 28
Parties
- M/s Prabhat Kumar Jhunjhunwala [Registration No. INB 030066116], Member, Calcutta Stock Exchange Limited
Holding
The stock broker M/s Prabhat Kumar Jhunjhunwala was censured for not reporting off the floor transactions to CSE in violation of Clause A(5) of the Code of Conduct.
Full text
Page 2 of 3 Enquiry Officer under the provisions of Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 (since repealed) to enquire into the alleged violations committed by the Broker. In the meanwhile, the said Regulations was repealed with effect from the notification of Securities and Exchange Board of India (Intermediaries) Regulations, 2008, (hereinafter referred to as the Intermediaries Regulations) and the Designated Authority (hereinafter referred to as the Enquiry Officer), vide Report dated June 15, 2009 recommended to censure the Broker for not reporting the off the floor transactions to CSE and thereby violating Clause A(5) of the Code of Conduct specified under Schedule II of the Broker Regulations. Pursuant to the submission of the Enquiry Report, SEBI issued a notice dated June 23, 2009 to the Broker advising it to show cause as to why the
Page 3 of 3 been accidental and not intentional.” The said reply of the Broker cannot be accepted. As an intermediary functioning in the securities market, it should not have violated the norms governing the securities market. The Enquiry Officer observed that the off the floor transactions were not reported by the Broker as required under SEBI Circular March 14, 1995 and thus, it had violated Clause A (5) of code of conduct for Stock Brokers Specified in Schedule II of the Broker Regulations. The Broker had not controverted the findings of the Enquiry Officer. Considering the totality of the facts and circumstances, the present enquiry proceeding initiated against the Broker is disposed of, as ordered hereinunder.
penalty as recommended by the Enquiry Officer or as considered appropriate by SEBI should not be imposed against it. A copy of the Enquiry Report was also forwarded to the Broker with the said show cause notice. Though, the Broker was advised to indicate whether it required a personal hearing, no response was made by it, in that regard. As no reply was received from the Broker, SEBI sent a reminder to the Broker on August 20, 2009. Thereafter, the Broker, vide letter August 25, 2009 stated that it had already explained the facts regarding the
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Source: SecMarx — sebi:WTM/KMA/ERO/IVD/220/02/2010. 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.