sebi:WTM/PS/35/MIRSD-5/FEB/2013
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Facts / Headnote
Certificate of registration cancelled
Provisions invoked
- s. 19
Regulations
- Reg. 15
- Reg. 16
- Reg. 2
- Reg. 28(2)
- Reg. 21
- Reg. 24
- Reg. 12A(1)(a)
Parties
- Mr. Bhadresh Sanghvi (Trade name: M/s Arihant Investment)
Holding
The certificate of registration of Mr. Bhadresh Sanghvi (Trade name: M/s Arihant Investment) bearing SEBI Registration No. INS 235801011 was cancelled for violations of the Securities Contracts (Regulation) Act, 1956, the Broker Regulations, SEBI Circulars, and the Code of Conduct for sub-brokers.
Full text
Page 2 of 8 the depositories, National Securities Depository Limited and Central Depository Services (India) Limited, shall not effect any debit instruction in the demat accounts of Bhadresh or in the demat accounts of any beneficial owner on the authority of power of attorney obtained by Bhadresh. Subsequently, SEBI initiated inspection of the books of accounts and other records of Bhadresh. In the meantime, the interim directions issued against Bhadresh were confirmed vide order dated August 30, 2012 (hereinafter referred to as 'confirmatory order'), subject to the outcome of the inspection ordered by SEBI.
Page 3 of 8 in support of his reply within twenty one days from the receipt thereof. It was also informed that in case of failure, it would be presumed that he had no reply to submit and the matter would be proceeded with, on the basis of the evidence available on record. A copy of the Enquiry Report was also forwarded to Bhadresh along with the SCN.
Page 4 of 8 trades outside the stock exchange mechanism, issuing contract notes in a format different from that prescribed by the exchanges and without signature of the trading member/ authorized signatory, displaying misleading sign board, not displaying the SEBI registration certificate, operating the Intermediate Message Layer (hereinafter referred to as 'IML') terminal at BSE without required certification and dealing with another broker for his own trades without prior permission of the exchange. I have considered the report of the Designated Authority, the SCN issued to Bhadresh, reply received and the material available on record. The relevant provisions of the Broker Regulations have been reproduced below:
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Source: SecMarx — sebi:WTM/PS/35/MIRSD-5/FEB/2013. 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.