sebi:WTM/MSS/ID7/194/09
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Enquiry proceedings disposed of without imposing any penalty
Provisions invoked
- s. 19
Regulations
- Reg. 16
- Reg. 28(2)
- Reg. 38(2)
Parties
- Bank of Rajasthan, Versova Branch, Mumbai (PAN No.AAACT7434N)
Holding
The enquiry proceedings initiated against Bank of Rajasthan, Versova Branch, Mumbai were disposed of without imposing any penalty for violation of Clause 7 of the Code of Conduct read with Regulation 16 of the Bankers Regulations.
Full text
Page 2 of 3 Penalty) Regulations, 2002 (Enquiry Regulations) submitted the enquiry report dated October 29, 2004. In the said report, the Enquiry Officer found that the Banker had issued third party stock invests to 8 applicants and these stock invests were issued against the lien on the fixed deposit of Rs. 80 lakh in a/c no. 559. Further, it was found that after allotment, the banker debited a different a/c and not a/c no.559, with an amount of Rs.75 lakh for the payment towards application money. EO found this to be in violation of Clause 7 of the Code of Conduct as specified in Schedule III read with Regulation 16 of the Bankers Regulations. However, EO noted that this was done with the intention of the protecting the interest of its clients as also of the bank and the banker was guided by the circular of its central office in this regard. In view of these facts and circumstances, the EO recommended that warning be issued to the banker.
Page 3 of 3 committed and the undertaking filed by the Banker, I am of the view that the present proceedings can be disposed of without imposing any penalty.
4. A show cause notice dated December 13, 2004 enclosing therewith a copy of the enquiry report was issued to the Banker seeking its comments on the findings and recommendations of the EO. Banker, vide its letter dated January 03, 2005, while accepting the findings of the enquiry report, submitted that in view of the facts and circumstances of the case, the banker may be exonerated for such minor irregularity.
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/MSS/ID7/194/09. 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.