sebi:WTM/PS/10/IVD/ID-04/May/2010
Facts / Headnote
Warning issued to the noticee; enquiry proceedings disposed of
Provisions invoked
- s. 19
Regulations relied on
- SEBI (Intermediaries) Regulations, 2008
- SEBI (Stock Brokers) Regulations, 1992
Parties
- FMS Securities Ltd.
Holding
The noticee, FMS Securities Ltd., was found to have contravened Regulation 7 read with clause A(2) of the Code of Conduct prescribed for stock brokers in the Broker Regulations by failing to act with due skill, care and diligence, and was warned accordingly.
Full text
Page 2 of 5 3. Based on the findings of the said investigations, SEBI initiated enquiry proceedings as against the noticee in terms of SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 (hereinafter referred to as ‘Enquiry Regulations’), by appointing an Enquiry Officer under Regulation 5(1) of Enquiry Regulations vide order dated August 23, 2007, read with subsequent order dated December 10, 2008. SEBI appointed the Enquiry Officer, to enquire into the alleged violation of the provisions of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 1995 (since repealed) read with SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (hereinafter referred to as ‘PFUTP Regulations’) and the Code of Conduct specified under Schedule II of SEBI (Stock Brokers and Sub-Broker) Regulation, 1992 (hereinafter referred to as ‘Broker Regulations’). As the Enquiry Regulations were repealed with effect from the notification of Securities and Exchange Board of India (Intermediaries) Regulations, 2008, the Enquiry Officer/ Designated Authority (hereinafter referred to as the Enquiry Officer) submitted his Report dated December 23, 2009, in terms of Regulation 27 of SEBI (Intermediaries) Regulations, 2008 recommending thereby warning to noticee for violating Clause A (2) of Code of Conduct specified under Schedule II of the Broker Regulations.
Page 3 of 5 5. The noticee replied to the SCN vide its letter dated February 11, 2010 and sought a personal hearing. Accordingly, an opportunity of personal was granted to the noticee before me on April 21, 2010. On the date fixed Mr. Vikas Aggarwal Company Secretary and Mr. Ankur Jain, Assistant Company Secretary appeared before me as the authorized representative of the noticee and reiterated the submissions made vide letter dated February 11, 2010.
Page 4 of 5 discrepancy as stated and the same appears to be a misinterpretation by the noticee. In view of this, I find no merits in the argument of the noticee.
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Source: SecMarx — sebi:WTM/PS/10/IVD/ID-04/May/2010. 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.