sebi:WTM/KMA/NRO/IVD/363/03/2011
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Facts / Headnote
Certificate of registration of the stock broker cancelled
Provisions invoked
- s. 19
Regulations
- Reg. 199
- Reg. 28
- Reg. 5(e)
- Reg. 38(3)
- Reg. 5(A)
- Reg. 6A(d)
Parties
- Bhartendu Financial Services Private Limited
Holding
The certificate of registration of Bhartendu Financial Services Private Limited as a stock broker was cancelled on the ground that it was not a fit and proper person under Regulation 5(e) and 5A of the Broker Regulations read with Regulation 38(3) and Schedule II of the Intermediaries Regulations, and had also violated Regulation 6A(d) by not paying outstanding turnover fees.
Full text
Page 2 of 7 and Exchange Board of India (Stock Brokers and Sub-brokers) Regulations 1992 (hereinafter referred to as the Broker Regulations) read with Regulation 38(3) along with Schedule II of the Intermediaries Regulations. The Designated Authority (hereinafter referred to as the Enquiry Officer), vide Report dated March 29, 2010, while recommending the cancellation of the certificate of registration of the Broker observed that the Broker had contravened Regulation 5(e) (read with 5A) and 6A(d) of the Broker Regulations.
Page 3 of 7 reasonable steps to serve the notices on the Broker, the Broker failed to appear on the date of hearing. As the Broker did not file its submissions despite various opportunities, I do not consider it necessary to grant another opportunity to it and the present enquiry proceeding is considered and disposed of on the basis of the available material on record.
Page 4 of 7 It was also stated in the letter that Bhartendu Financial Services Private Limited was dormant till December 14, 1996 and thereafter, Mrs. Urmila Pandey had resigned to pave way for Hoffland employees to be inducted as directors, while Mr. N.C. Pandey continued as director. Mr. N.C. Pandey further stated “During 1996-97, under the Scheme of things of HFL Management, the dummy directors were told that a membership ticket of stock exchange, Bombay has been negotiated ………………………... The interviews were held during March '97 in the stock exchange, Mumbai (BSE) where a full-fledged interview board consisting of representatives from Reserve Bank of India, Securities & Exchange Board of India and others were present and transfer of membership ticket in favour of the said above company was approved and SEBI registration was granted”.
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Source: SecMarx — sebi:WTM/KMA/NRO/IVD/363/03/2011. 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.