sebi:WTM/KMA/IVD-ERO/21/12/2008
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Certificate of registration of the stock broker suspended for a period of one month
Provisions invoked
- s. 19
Regulations
- Reg. 28(2)
Parties
- M/s Prakash Nahata & Co.
Holding
The stock broker, M/s Prakash Nahata & Co., violated SEBI circular dated September 14, 1999 read with CSE notice dated September 16, 1999 by executing off-market/negotiated trades not reported to the exchange and not settled within 24 hours, and its certificate of registration was suspended for one month.
Full text
Page 2 of 6 value, net obligation of the stock brokers who had traded in various scrips. During the relevant period, 18,77,376 shares of the company were traded at CSE. It was found that the Broker had executed off market trades during the relevant period. The Broker bought and sold 1,94,100 shares of the company through off market deals, prima facie without reporting to CSE. Besides, the delivery of payment had not taken place within twenty four hours of the transaction. In view of the above, it was alleged that the Broker prima facie violated the provisions of Securities and Exchange Board of India Act, 1992, Securities Contracts (Regulations) Act, 1956 (hereinafter referred to as the Act) etc.
Page 3 of 6 of SEBI. Considering the facts and circumstances of the case, I do not consider it necessary to give a further opportunity to the Broker and, therefore, I proceed with the matter on the basis of the available materials on record, in terms of the provisions of Securities and Exchange Board of India (Intermediaries) Regulations, 2008. The issue for consideration in the present matter is whether the Broker violated the provisions of the Act and the provisions of SEBI circular dated September 14, 1999 as observed by the Enquiry Officer. The execution of the ‘off the floor’ transactions by the Broker is not disputed either before the Enquiry Officer or before me. Details of some of the ‘off the floor’ transactions (including the details of the contract notes) executed by the Broker are specified below:
Page 4 of 6 “Qn1. It is alleged that the member has not reported the ‘off-the- floor’ transactions to CSE (details given in the notice). Please explain.
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:WTM/KMA/IVD-ERO/21/12/2008. 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.