sebi:WTM/TCN/ID3/30/06/2007
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
No penalty imposed on the broker
Provisions invoked
- s. 19
Regulations
- Reg. 7
- Reg. 13(4)
- Reg. 4
- Reg. 4(b)
- Reg. 13(1)
- Reg. 6(1)
Parties
- M/s. H B Securities Limited (SEBI Registration No. INB 230607337), Member, National Stock Exchange
Holding
No penalty is levied on the broker M/s. H B Securities Limited for trades executed on behalf of its client YSIL in the scrip of Jaiprakash Industries Limited, as the broker did not violate margin requirements, Regulation 4(b) and (d) of the PFUTP Regulations, 1995, or the duty of due diligence and care.
Full text
Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ ORDER UNDER REGULATION 13(4) OF SEBI (PROCEDURE FOR HOLDING ENQUIRY BY ENQUIRY OFFICER AND IMPOSING PENALTY) REGULATIONS, 2002, AGAINST M/s. HB SECURITIES PRIVATE LIMITED (SEBI REGISTRATION NO. INB 230607337), MEMBER, NATIONAL STOCK EXCHANGE IN THE MATTER OF M/s. JAIPRAKASH INDUSTRIES LIMITED
Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002, I hereby direct that no penalty needs to be levied on the broker M/s. H B Securities Limited, Mem National Stock Exchange, under the instant proceedings. PLACE: Mumbai T C NAIR DATE: 19.06.2007 WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA
i. It cannot be concluded that the broker failed to adhere to the margin requirements while acting on behalf of the client. ii. In the absence of any other evidence to the contrary the contention of the broker that it acted on behalf of the client only after exercising due diligence and care appears to be correct. In view of the above, the Enquiry Officer has recommended that no penalty may be imposed on the broker.
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Source: SecMarx — sebi:WTM/TCN/ID3/30/06/2007. 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.