sebi:WTMN/25/MIRSD/6/04
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Facts / Headnote
Certificate of registration bearing No. INB 200870312 granted to Arun Kumar Aggarwal cancelled with immediate effect.
Provisions invoked
- s. 19
- s. 24
Regulations
- Reg. 13
- Reg. 16
- Reg. 27
- Reg. 13(1)
- Reg. 15(c)
- Reg. 13(6)
- Reg. 25
- Reg. 16(5)
Parties
- Arun Kumar Aggarwal
Holding
The certificate of registration granted to Arun Kumar Aggarwal as a stock broker is cancelled because he ceased to be a member of a recognized stock exchange (OTCEI expelled him w.e.f. 22.12.03), thereby violating a condition of registration.
Full text
Page 2 of 5 recommended cancellation of the certificate of registration granted to the said broker, as the said broker ceased to be a member a recognized stock exchange. 2.4 I note that adequate opportunity had been given to the said broker in terms of Regulation 16 of the Enquiry Regulations. Therefore, I am satisfied that the requirements of natural justice have been fulfilled and I proceed further in the matter. 3.0 I have considered the facts of the matter, report of the Enquiry Officer and other material on record. The following issue arises for consideration: 3.1 Whether, the said broker has violated the conditions of registration. 3.1.1 I note that OTCEI vide its letter dated 26.12.03 informed SEBI that they have expelled the said broker w.e.f. 22.12.03 and that he has ceased to be the member of the Exchange with effect from 22.12.03. 3.1.2 I note that Rule 4 of the SEBI (Stock brokers and sub brokers) Rules, 1992 (hereinafter referred to as “the broker regulations”) states that : “Conditions for grant of certificate to stock broker
Page 3 of 5 (b) … (c) … (d) … (e) … ” 3.1.4 I note that the Enquiry Officer in his report has found that the said broker ceased to be a member of OTCEI w.e.f. 22.12.03, hence his certificate is liable to be cancelled. 3.1.5 In view of the above, I agree with the findings of the Enquiry Officer and find that the said broker has violated one of the conditions subject to which registration has been granted to him viz. that he shall be a member of a recognized stock exchange. 3.2 I note that Regulation 25 of the broker regulations provides that : “Liability for contravention of the Act, rules or the regulations.
Page 4 of 5 Imposing Penalty) Regulations, 2002 including suspension or cancellation of certificate of registration as a stock broker or a sub-broker. (iii) Prosecution under section 24 of the Act.” Further Regulation 27 of the broker regulations provides that: “Liability for action under the Enquiry Proceeding Regulations.
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Source: SecMarx — sebi:WTMN/25/MIRSD/6/04. 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.