sebi:WTM/TCN/ID3/88/02/2007
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Facts / Headnote
Censure imposed on the noticee broker; Enquiry Officer's recommended 30-day suspension of registration found harsh and not imposed.
Provisions invoked
- s. 19
- s. 81
Regulations
- Reg. 7
- Reg. 4
- Reg. 13
- Reg. 6
- Reg. 13(2)
- Reg. 6(1)
Parties
- M/s. Networth Stock Broking Limited
Holding
The Whole Time Member censured M/s. Networth Stock Broking Limited for violating SEBI circulars on margin collection, off-market transactions, and crediting of securities to client accounts, thereby violating the code of conduct for stock brokers, but found insufficient material to substantiate manipulative trades under the PFUTP Regulations, 1995.
Full text
Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ ORDER UNDER REGULATION 13 (4) OF SEBI (PROCEDURE FOR HOLDING ENQUIRY BY THE ENQUIRY OFFICER AND IMPOSING PENALTY) REGULATIONS, 2002 AGAINST M/S. NETWORTH STOCK BROKING LIMITED, IN THE MATTER OF M/S. SPANCO TELESYSTEMS AND SOLUTIONS LIMITED WTM/TCN/ID3/88/02/2007
7. Though the resolution was passed to allot shares in the above manner, no allotment was made within stipulated period of three months. An Extra Ordinary General Meeting was on May 29, 2001 wherein a resolution was passed to allot 30,00,000 shares at Rs.10/- each for cash at a premium of Rs.27/- per share aggregating to Rs.11,10,00,000/ preferential basis to the persons mentioned in the above table. It was observed that this premium structure was reduced from Rs.42/- to Rs. 27/- per share.
· Shri Ketan Vadalia introduced Geeta Gala, Kabir Global Ltd., Kanchan p. Shah, Vimla Gala and Ratanben Shah and that they were dealing with them independent for the purchases made by the said clients were made by cheques drawn from their respective accounts. The absence of a written authorization and Member/clien at best be termed a venal error and does not merit harsh punishment. · The broker is not aware of the contents of the statements of Shri Ketan Vadalia since a copy of the statement was not furnished to it · NSBL had dealt with the clients independently and had exercised due diligence in its dealings. · Smt. Amiti Vadalia was introduced to NSBL by her husband Shri Ketan Vadalia and not by Shri Navin Marvah as erroneously stated in the Enquiry Report. · NSBL had no knowledge of investments of Rashi Investments. NSBL had also no knowledge whatsoever of whether Shri Kapil Puri knew Shri Navin Marvah. · Trades of Smt. Amiti Vadalia could not be linked with the trades of Shri Navin Marvah in any manner as Smt. Amiti Vadalia was introduced by her husband and no Shri Navin Marvah was not NSBL’s client. · M/s. Indumati Goda and Jignesh Shah were not NSBL’s only clients or main clients during the investigation period. There were more than 500 clients during that per · The statement of Shri Sirish Shah was not furnished to NSBL
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Source: SecMarx — sebi:WTM/TCN/ID3/88/02/2007. 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.