sebi:WTM/TCN/68/ID5/NOV/08
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Facts / Headnote
Enquiry proceedings disposed of; sub-broker held guilty and penalty of suspension of certificate of registration for three months imposed, though no further directions passed as registration was already cancelled.
Provisions invoked
- s. 19
- s. 13
Regulations
- Reg. 5(1)
- Reg. 13
- Reg. 15
- Reg. 28(2)
- Reg. 6A
Parties
- Bluechip Capital Market Pvt. Ltd.
Holding
The sub-broker Bluechip Capital Market Pvt. Ltd. was held guilty of violating Section 2(i) and Section 13 of the Securities Contracts (Regulation) Act, 1956 and the Code of Conduct under Regulation 15 of the SEBI (Stock Brokers and Sub-brokers) Regulations, 1992, and a penalty of suspension of its certificate of registration for three months was imposed.
Full text
2. In view of the above, the Securities and Exchange Board of India (hereinafter referred to as “SEBI”) conducted investigation into buying, selling and dealing in the scrip of Bombay Dyeing during the period October 1999 – October 2000 vide order dated November 15,2000. It was alleged in the investigation report that Bluechip Capital Market Pvt. Ltd (hereinafter referred to as the “sub-broker”), having SEBI Registration No. INS230408739 affiliated to M/s BPS Securities Pvt Ltd. a broker, (hereinafter referred to as “BPS”) of NSE entered into off-market transactions in the scrip of Bombay Dyeing which were not in accordance with the provisions of Securities Contracts (Regulation) Act, 1956.
SEBI (Stock Brokers and Sub Brokers) Regulations, 1992 and Rule 4 of SEBI (Stock Brokers and Sub Brokers) Rules, 1992. The Enquiry Officer submitted his report dated September 30, 2004 recommending a suspension of the certificate of registration of the sub-broker for a period of two years.
7. Due to change in competent authority, the matter was put up afresh before me. Accordingly, an opportunity of personal hearing was granted to the sub broker before me on October 17, 2008 wherein Shri Sandeep Jain, director of Bluechip appeared before me and made submissions. During the course of personal hearing before me, the sub broker vide letter dated ‘Nil’ submitted written submissions which were similar to its letter dated November 16, 2004.
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Source: SecMarx — sebi:WTM/TCN/68/ID5/NOV/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.