sebi:WTM/PS/40/IVD/ID2/SEPT/10
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Facts / Headnote
Certificate of registration of DPS Shares and Securities Private Limited suspended for a period of 3 months, effective on expiry of 21 days from the date of the order
Provisions invoked
- s. 19
Regulations
- Reg. 7
- Reg. 3
- Reg. 5(1)
- Reg. 28(2)
- Reg. 27
- Reg. 28(1)
Parties
- DPS Shares and Securities Private Limited
Holding
SEBI held DPS Shares and Securities Private Limited guilty of issuing falsified/dummy contract notes aiding MCL and suspended its certificate of registration, SEBI Registration No. INB010986539, for a period of 3 months.
Full text
Page 2 of 6 compared to a loss of Rs.16.7 lac in 2003-04. This quantum jump in the profits of MCL was claimed to be on account of sale by MCL of shares of three companies i.e. Lakshmi Overseas Ltd., Karuna Cables Ltd. and IFSL Ltd. As per the findings of the investigation, it was claimed by MCL that it recorded an income of Rs.10.8 crores in 2004-05 from its investments, as the proceeds of the abovementioned sale of shares. MCL further claimed that the said sale of shares was executed by it on the BSE through DPS in the BSE Online Trading System (BOLT), for which the contract notes and other documents were issued by DPS to MCL. The said contract notes and other documents claimed to be issued by DPS were submitted by MCL to SEBI during the course of investigation.
Page 3 of 6 Regulations, 2008 (hereinafter referred to as ‘Intermediaries Regulations’), the Enquiry Officer/ Designated Authority (hereinafter referred to as the ‘Enquiry Officer’) submitted his Report dated July 16, 2009, in terms of Regulation 27 of Intermediaries Regulations, recommending thereby a penalty of suspension for a period of 3 months to the noticee for issuance of falsified contract notes violating the provisions of Regulations 3 (b), (c) & (d); 4 (1) and 4 (2) (p) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as ‘PFUTP Regulations’) and the provisions of Clauses A (1), (2), (3), (4) and (5) of the Code of Conduct for Stock Brokers, specified in Schedule II read with Regulation 7 of SEBI (Brokers and Sub Brokers) Regulations, 1992 (hereinafter referred to as ‘Stock Brokers Regulations’).
Page 4 of 6 behalf of DPS and requested for adjournment of hearing to any future date due to non-availability of its lawyer. Accordingly, a third opportunity of hearing was granted to DPS on May 7, 2010. Again vide letter dated May 7, 2010, DPS sought adjournment of hearing for the same reason of non-availability of its lawyer. I am of the view that despite giving ample opportunity of personal hearing to DPS it failed to appear before me and sought adjournment on the same grounds that the lawyer was not available; hence, no further adjournments are necessary and the matter may be proceeded ex-parte.
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Source: SecMarx — sebi:WTM/PS/40/IVD/ID2/SEPT/10. 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.