sebi:WTM/SR/SEBI/EFD-DRA2/46/08/2017
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Facts / Headnote
Cancellation of certificate of registration as a Stock Broker granted to M/s Unique Consulting & Trading Private Limited (SEBI Registration Nos. INB 041452138 and INF 041452138); Show Cause Notice dated May 05, 2016 disposed of accordingly.
Provisions invoked
- s. 19
- s. 12(1)
- s. 12
Regulations
- Reg. 3
- Reg. 6
- Reg. 28(2)
- Reg. 9
- Reg. 27
Parties
- M/s Unique Consulting & Trading Private Limited
Holding
The Noticee, a SEBI registered stock broker, was found to have violated Section 12 of the SEBI Act read with Regulation 3 of the PMS Regulations, Rule 8(3)(f) of SCRR, Clause (5) of the Code of Conduct in Schedule II read with Regulation 9 of the Brokers Regulations, and Section 12A(a), (b) and (c) of the SEBI Act read with Regulations 3(b), (c), (d), 4(1) and 4(2)(k) of the PFUTP Regulations. Consequently, the certificate of registration as a Stock Broker was cancelled.
Full text
Page 2 of 12 3. Subsequently upon preliminary inquiry by SEBI, it was observed that Unique Consulting by misusing the certificate of registration granted to act as a Stock broker solicited its clients and general investors to entrust their funds and securities to it and also offered portfolio management and advisory services without obtaining the certificate of registration from SEBI to function as a Portfolio Manager. Further, Unique Consulting indulged in fund based activities involving personal financial liability and collected deposits from clients and general public in a fraudulent and deceitful manner by misrepresentation.
Page 3 of 12 6. The DA after considering the abovementioned allegations and the material available on record, vide Report dated April 23, 2015, in terms of Regulation 27 of the Intermediaries Regulations, recommended cancellation of the Certificate of Registration of Unique Consulting.
Page 4 of 12 ..... (3) No person who is a member at the time of application for recognition or subsequently admitted as a member shall continue as such if— ... (f) he engages either as principal or employee in any business other than that of securities or commodity derivatives except as a broker or agent not involving any personal financial liability, provided that— (i) the governing body may, for reasons, to be recorded in writing, permit a member to engage himself as principal or employee in any such business, if the member in question ceases to carry on business on the stock exchange either as an individual or as a partner in a firm, (ii) in the case of those members who were under the rules in force at the time of such application permitted to engage in any such business and were actually so engaged on the date of such application, a period of three years from the date of the grant of recognition shall be allowed for severing their connection with any such business, (iii) nothing herein shall affect members of a recognised stock exchange which are corporations, bodies corporate, companies or institutions referred to in items (a) to (k) of the proviso to sub-rule (4)."
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Source: SecMarx — sebi:WTM/SR/SEBI/EFD-DRA2/46/08/2017. 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.