sebi:WTM/TCN/03/MIRSD/May/08
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Minor penalty of 'censure' imposed on Mayor Saluja Securities Ltd.
Provisions invoked
- s. 12
Regulations
- Reg. 7
- Reg. 13(4)
- Reg. 5(1)
- Reg. 13(2)
- Reg. 17
- Reg. 200
- Reg. 6(1)
- Reg. 18A
Parties
- Mayor Saluja Securities Ltd., INB 050988431
Holding
In exercise of powers under Regulation 13(4) of the Enquiry Regulations, 2002, SEBI imposed a minor penalty of 'censure' on Mayor Saluja Securities Ltd. for admitted technical violations relating to books, contract notes, sub-broker dealings, client records, compliance officer and delayed accounts, while not establishing the other-business charge.
Full text
2 (hereinafter referred to as “the Stock Broker Regulations”) and the same was carried out by M/s Uberoi Sood & Kapoor, Chartered Accountants on behalf of SEBI.
3 notice. MSSL vide its letter dated January 04, 2005 replied to the show cause notice. MSSL replied only with regard to the complaint of Paramjeet & Co. wherein they contended that they had not made any of the disputed transactions with Paramjeet & Co. They submitted that the DSE vide its letter dated March 26, 1998 had asked Paramjeet & Co. to submit a copy of documents pertaining to transactions entered between them and the broker, MSSL, viz., contract notes, purchase / sale bills, delivery challan by April 4, 1998 indicating that failure to furnish the same would tantamount to complaint being baseless and the same will be treated accordingly. However Paramjeet & Co. did not submit any documents regarding the disputed transactions to the DSE. In view of the complicity of the matter Paramjeet & Co. was advised to refer to the matter for arbitration. Therefore, they contended that since Paramjeet & Co. has not been able to provide any proof regarding the disputed transactions, there is no cause and hence no dispute exists.
4 that MSSL was a small broking company where the majority of clients would come personally to the office and shout Sell/Buy orders after watching the rates on the computer screen. Under these conditions it would be impracticable to first take the clients order in writing and then record it in the order book before executing the same since it took two to five minutes to pass the order and the price fluctuation during this time gap can be very substantial. Nonetheless, I find that MSSL is required to maintain the order book which shows the time of placement and execution of order which is very important from the investor’s perspective. I observed that while no
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Source: SecMarx — sebi:WTM/TCN/03/MIRSD/May/08. 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.