sebi:WTM/RKA/IVD/ID-6/45/2012
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Certificate of registration of Alka Securities Ltd. suspended for a period of two months, to operate concurrently with an earlier suspension order dated October 08, 2012 for two years; order to come into force on expiry of twenty one days from the date of this order.
Provisions invoked
- s. 19
Regulations
- Reg. 7
- Reg. 17
- Reg. 21(1)
- Reg. 28(2)
- Reg. 17(1)(g)
- Reg. 28
- Reg. 17(2)
- Reg. 17(1)(e)
Parties
- Alka Securities Ltd. (ASL)
Holding
The noticee Alka Securities Ltd. was found guilty of violating regulations 17(1)(e) and 17(2) of the Stock Broker Regulations, the Code of Conduct for stock brokers (Clauses A(1), A(2), A(5) and C(6)), and various SEBI circulars, and its certificate of registration was suspended for two months.
Full text
Page 2 of 16 2. Vide another order dated January 28, 2010, an inspection of ASL was ordered to look into its books of accounts, the procedures adopted by it for safe keeping of the clients’ securities and funds and their compliance with the rules, regulations, bye laws and other requirements.
Page 3 of 16 Facility’, despite having sufficient credit balance in the clients’ account. Thus, it mis- utilized the clients securities. The noticee did not have adequate system and procedures to ensure that client collateral is used for meeting client's margin requirement/pay-in only. It also failed to ensure proper audit trail of the use of the client collateral. All these acts of the noticee resulted in violation of Clause A(1) and (5) of the Code of Conduct for stock brokers prescribed in schedule II read with regulation 7 of the Stock Broker Regulations SEBI Circular no. MRD/DoP/SE/Cir- 11/2008 dated April 17, 2008.
Page 4 of 16 having funded the clients through cash transactions, it has violated SEBI Circular SEBI/MRD/SE/Cir-33/2003/27/08 dated August 27, 2003.
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Source: SecMarx — sebi:WTM/RKA/IVD/ID-6/45/2012. 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.