sebi:WTM/VKC/MIRSD/12/09/06

SEBI · SEBI · 2002-09-13 · V.K. Chopra, Whole Time Member

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Certificate of registration cancelled with immediate effect

Provisions invoked

• s. 19

Regulations

• Reg. 6
• Reg. 13(4)
• Reg. 5
• Reg. 27
• Reg. 16
• Reg. 13(2)
• Reg. 200
• Reg. 21

Parties

• M/s. Kishore Securities Pvt. Ltd.

Holding

The Whole Time Member cancelled the certificate of registration of M/s Kishore Securities Pvt. Ltd. (SEBI Registration No. INB 101023837) for non-cooperation with the inspection authority and for having been declared defaulter by UPSE without being readmitted within six months.

Full text

Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ ORDER (Under Regulation 13(4) of SEBI (Procedure of Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002)

3.1.1        The Enquiry Officer found that the broker has not cooperated with the inspection authority, it was stated by the broker that it was aware the inspection and the representative of the broker had confirmed the receipt of correspondence. It also confirmed that he is aware obligations as a stock broker on inspection by SEBI. I have considered the fact that the inspecting authority had written several letters to the broker, some of these were dated Septem 2002, January 03, 2003 and April 09, 2003. In addition to this they also tried to contact the broker through telephonically. I have noted th that SEBI and UPSE also followed up with the member advising it to extend cooperation and furnish all the information and material requ the inspection authority. The agent of the broker had appeared before the Enquiry Officer and submitted that the books of account were duly submitted w inspection authority. It was also stated through the reply of the broker that it had met the inspecting authority 3-4 times. But the brok failed to submit any proof of the same. From the above, I find that sufficient opportunities have been given to the member, but it failed to produce its books of accoun records before the inspecting authority. The contention of giving satisfactory replies to the queries of inspecting authority is not sustaina light of the repeated follow-ups done by SEBI and UPSE. I have noted the submission of the broker that it has been declared defaulter. The broker should n

submit the records for inspection. Hence the inspection authority submitted its report to SEBI stating about the non-cooperation of the broker.

Source: SecMarx — sebi:WTM/VKC/MIRSD/12/09/06. 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.