sebi:WTM/SR/MIRSD/05/01/2015
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Facts / Headnote
Certificate of registration of the Noticee suspended till outstanding registration fees are fully paid
Provisions invoked
- s. 19
- s. 24
Regulations
- Reg. 27
- Reg. 10
- Reg. 33B
Parties
- Shreenath Kapoor
Holding
The Whole Time Member suspended the certificate of registration of Mr. Shreenath Kapoor (SEBI Regn No: INB030057614) until outstanding registration fees are fully paid, rejecting the Noticee's jurisdictional objections and finding that the Noticee failed to pay registration fees under Regulation 10 read with Schedule III of the Brokers Regulations.
Full text
Page 2 of 9 4. Subsequently, the Enquiry Regulations were repealed and SEBI (Intermediaries) Regulations, 2008 (‘Intermediaries Regulations’) were notified. On completion of proceedings in terms of Regulation 27 of the Intermediaries Regulations, the Designated Authority vide report dated October 27, 2009 recommended that the certificate of registration of the Noticee be suspended for a period of 6 (six) months or till such time the Noticee clears fee liabilities with SEBI, whichever is later.
Page 3 of 9 9. SEBI vide notice dated January 11, 2011 once again granted an opportunity to the Noticee to submit written representations together with documents relied upon by it. A copy of Annexure to the Enquiry Report and Fee liability statement as on January 2011 were also enclosed with the said notice. The Noticee replied to the said notice vide letter dated February 04, 2011 and merely reiterated its earlier contentions but did not submit any details or documents with regard to the payment of registration fees.
Page 4 of 9 13. The relevant provisions are reproduced hereunder for ready reference: Regulation 10 of Brokers Regulations Payment of fees and the consequences of failure to pay fees. (1) Every applicant eligible for grant of a certificate shall pay such fees and in such manner as specified in Schedule III or Schedule IIIA, as the case may be. Provided that the Board may on sufficient cause being shown permit the stock-broker to pay such fees at any time before the expiry of six months from the date for which such fees become due. (2) Where a stock-broker fails to pay the fees as provided in regulation 10, the Board may suspend the registration certificate, whereupon the stock- broker shall cease to buy, sell or deal in securities as a stock- broker." Schedule - III of Brokers Regulations "Every stock broker shall subject to paragraphs 2 and 3 of this Schedule pay registration fees in the manner set out below : a) Where the annual turnover does not exceed rupees one crore during any financial year, a sum of rupees five thousand for each financial year or; (b) Where the annual turnover of the stock-broker exceeds rupees one crore during any financial year, a sum of rupees five thousand plus one hundredth of one percent of the turnover in excess of rupees one crore for each financial year"
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Source: SecMarx — sebi:WTM/SR/MIRSD/05/01/2015. 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.