sebi:WTM/KMA/IVD/398/07/2011
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Facts / Headnote
Show cause notice dated July 9, 2010 disposed of without considering the matter on merits; enquiry proceeding to be initiated against ASL under SEBI (Intermediaries) Regulations, 2008.
Parties
- Alka Securities Limited
Holding
The show cause notice dated July 9, 2010 issued to Alka Securities Limited was disposed of without considering the matter on merits, and instead an enquiry proceeding was to be initiated against ASL under the SEBI (Intermediaries) Regulations, 2008.
Full text
Page 2 of 4 buy order for 500 shares in the shares of Mangalore Refinery and Petrochemicals Limited at the National Stock Exchange of India Limited (NSE) for the client, Mr. Anna Adhikrao Gaikwad (client code : A0015). On inquiry, ASL, faxed a letter to NSE on April 6, 2010 informing that the said client was an old client and that the Uniform Client Code (UCC) of the said client had been uploaded. In the meanwhile, ASL had executed a sell order for 25 shares of Mangalore Refinery and Petrochemicals Limited for the said client on April 7, 2010. ASL, vide letter dated April 7, 2010 provided the Know Your Client (KYC) forms of the said client with Mahesh Kothari Shares & Stock Brokers Limited (MKSSB) to NSE along with the UCC snapshot on April 8, 2010, giving the date of upload as December 14, 2007 at BSE. On April 6, 2010, ASL executed a buy order and a sell order for 1000 shares each in the scrip, Brandhouse Retails Limited (trade value Rs.76,237) for another client namely, Mr. Jayant Shah (Client Code: J0010). The client code details for this code were not uploaded on NSE. NSE followed up with ASL about the details of the client code following which ASL uploaded the client details on April 13, 2010. After verifying the details, NSE sought explanation from ASL on the same day for taking in a fresh client, in violation of the SEBI Orders dated July 28 2009 as confirmed on October 16, 2009. On April 19, 2010, NSE informed SEBI of the aforesaid acts of ASL and the explanations pr
Page 3 of 4 In response to the said notice, ASL vide letter dated July 15, 2010 had sought inspection of certain document. Though, SEBI provided opportunities of inspection to ASL on July 26, 2010 and August 10, 2010, ASL did not avail the opportunities. ASL also did not avail of the hearing opportunities afforded on September 23, 2010 and November 24, 2010.
Page 4 of 4 4. The disposal of the show cause notice dated July 9, 2010 is without prejudice to the rights of the Securities and Exchange Board of India to initiate enquiry proceedings in accordance with the provisions of the Securities and Exchange Board of India (Intermediaries) Regulations, 2008 for the alleged violations, as mentioned in the aforesaid notice. A separate Order would be issued for appointing a Designated Authority in this regard and the Designated Authority shall expeditiously complete the enquiry as early as possible but not later than six months from the date of such appointment.
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Source: SecMarx — sebi:WTM/KMA/IVD/398/07/2011. 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.