sebi:WTM/RKA/ID-4/17/2013
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Facts / Headnote
No action taken; Show Cause Notice No. IVD/ID4/SKS/SL/20823/2012 dated September 17, 2012 disposed of
Provisions invoked
- s. 11
- s. 19
- s. 12
- s. 11(2)
- s. 12(3)
- s. 30(1)
Regulations
- Reg. 7
- Reg. 28
- Reg. 27
- Reg. 23
- Reg. 26
- Reg. 24
- Reg. 25
Parties
- Bonanza Portfolio Ltd.
Holding
The designated member (Whole Time Member) held the show cause notice was validly issued despite the designated authority recommending no action, but on merits disposed of the show cause notice dated September 17, 2012 without taking any action under Section 12(3) of the Act read with Regulations 27 and 28 of the Intermediaries Regulations against Bonanza Portfolio Ltd.
Full text
2 directors) and Metcam Holdings P. Ltd. (where Deeksha was the director) were found to be either singly or jointly holding bank accounts.
3 received three demand drafts for the value of `23.55 lakh, `50 lakh and `18 lakh, respectively that were issued from the bank account of Norman Martins with Citibank. There was one instance where `50 lakh was transferred by way of fund transfer from the account of Norman Martins with Citibank to the noticee's account for the trades of its client Deeksha. With regard to allegation of accepting third party payments for the trades of its clients, the DA observed that the noticee had accepted the demand drafts having Unique Client Codes of the respective clients on the face and there was nothing to indicate that the demand drafts were being issued from third party accounts. The DA found that there was nothing on record to show that the noticee could have any reason to doubt that the demand drafts received by the noticee were issued from third party account.
4 violation of SEBI circular no. SEBI/MRD/SE/Cir-33/2003/27/08 dated August 27, 2003 and advised you to be careful and cautious in dealing with your clients.
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Source: SecMarx — sebi:WTM/RKA/ID-4/17/2013. 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.