sebi:WTM/KMA/MIRSD/07/10/2008
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Facts / Headnote
Proceedings disposed of without imposing any additional penalty; broker advised to comply with statutory provisions without delay in future
Provisions invoked
- s. 19
Regulations
- Reg. 27
- Reg. 28(2)
- Reg. 38
Parties
- Atmaram Kejriwal & Company, Member, Uttar Pradesh Stock Exchange Association Ltd. (Registration No. INB100362712)
Holding
No additional penalty is imposed on Atmaram Kejriwal & Company for late payment of the Adjudicating Officer's penalty, as the broker had subsequently remitted the penalty, and the proceedings are disposed of with an advice to comply timely in future.
Full text
Page 2 of 3 2. Subsequently, as the Broker had failed to comply with the order of the Adjudicating Officer, SEBI initiated proceedings against it, under the then existing provisions of Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 (hereinafter referred to as the Enquiry Regulations) to enquire into the alleged violation of Regulation 27 (xi) of Securities and Exchange Board of India (Stock Brokers and Sub Brokers) Regulations, 1992. After considering the materials available on record including the documents submitted by the Broker, the Officer appointed to conduct proceedings, vide report dated November 10, 2005 recommended to impose a major penalty of suspension of the certificate of registration of the Broker for a period of four months. Subsequently, the Hon’ble SAT, vide order dated August 9, 2006 dismissed the appeal filed by the Broker. Pursuant to the said report and in view of the dismissal of the appeal filed by the Broker, SEBI, vide letter dated November 3, 2006, advised the Broker to pay the penalty as ordered by the Adjudicating Officer, before November 25,
Page 3 of 3 June 11, 2004, within the stipulated time. By not paying the penalty as ordered by the Adjudicating Officer, the Broker had violated the provisions of Regulation 27(xi) of the Broker Regulations. As an intermediary operating in the securities market, the Broker inter alia shall abide by the provisions of Securities and Exchange Board of India Act 1992 and the rules regulations issued there under including the order of the Adjudicating Officer, within the stipulated time. I note that, pursuant to the letter of SEBI dated November 3, 2006, the Broker had paid the penalty, vide letter dated November 25, 2006. Taking into consideration, the facts of the case, I do not consider it fit to impose the penalty as recommended. In the attending circumstances, I dispose of the present proceedings as ordered herein under.
2006. It was also informed that the non payment of penalty might result in the initiation of proceedings as deemed appropriate including cancellation of the certificate of registration. Thereafter, the Broker vide letter dated November 25, 2006 enclosed a Demand Draft No. 797448 (dated November 25, 2006) drawn on Standard Chartered Bank, Mumbai for an amount of Rs.1,50,000/- in favour of SEBI, towards the said penalty amount.
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Source: SecMarx — sebi:WTM/KMA/MIRSD/07/10/2008. 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.