sebi:WTMN/29/MIRSD/6/04

SEBI · SEBI · 2004-02-23 · T. M. Nagarajan, 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

Cancellation of certificate of registration

Provisions invoked

• s. 19

Regulations

• Reg. 16(1)
• Reg. 27
• Reg. 13(1)
• Reg. 15(c)
• Reg. 16
• Reg. 13(6)
• Reg. 16(5)
• Reg. 25
• Reg. 1

Parties

• A S Shriram (Trade name: Alasri Investments)

Holding

The Whole Time Member cancelled the certificate of registration bearing No. INB 210541015 granted to A S Shriram (Trade name: Alasri Investments). This order shall come into effect immediately.

Full text

Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ ORDER Order under Regulation 16(5) and 13(1)(b) of the of Securities and Exchange Board of India (Procedure for holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 in the matter of enquiry against A S Shriram, erstwhile member of Coimbatore Stock Exchange and stock broker registered with SEBI.                                                                                             WTMN/29/MIRSD/6/04 1.0 A S Shriram (Trade name: Alasri Investments) (hereinafter referred to as “the said broker”) was a member of Coimbatore Stock Exchange Ltd. (hereinafter referred to as “CSEL”) and a stock broker registered with the Securities and Exchange Board of India (hereinafter referred to as “SEBI”) under certificate of registration No. INB 210541015. 1.1 SEBI, vide order dated 23.02.04 appointed an Enquiry Officer under the Regulation 16(1) of SEBI (Procedure for holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 (hereinafter referred to as “Enquiry Regulations”) to hold an enquiry under Chapter III of the Enquiry Regulations. 1.2 The Enquiry Officer, acting in accordance with regulation 16 (2) of the Enquiry Regulations issued show cause notice to the said broker on 03.03.04 advising it to show cause why its registration as a stock broker should not be cancelled under the provisions of the Enquiry Regulations since the member ceased to be a member of the CS

1.1 SEBI, vide order dated 23.02.04 appointed an Enquiry Officer under the Regulation 16(1) of SEBI (Procedure for holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 (hereinafter referred to as “Enquiry Regulations”) to hold an enquiry under Chapter III of the Enquiry Regulations. 1.2 The Enquiry Officer, acting in accordance with regulation 16 (2) of the Enquiry Regulations issued show cause notice to the said broker on 03.03.04 advising it to show cause why its registration as a stock broker should not be cancelled under the provisions of the Enquiry Regulations since the member ceased to be a member of the CSEL. The said broker replied to the said show cause notice vide its letter dated 23.03.04. 1.3 Thereafter, the Enquiry Officer after considering the said reply to the said show cause notice, submitted his report on 04.05.04. In his report the Enquiry Officer observed that CSEL had declared the said broker as defaulter on 17.01.97 and that the said broker was not readmitted to the Stock Exchange. Therefore, the Enquiry Officer recommended cancellation of the certificate of registration granted to the said broker, as the said broker is no longer a member of CSEL. 1.4 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. 2.0 I have considered the facts of the ma

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. 2.2 I note that Regulation 25 of the broker regulations provides that : “Liability for contravention of the Act, rules or the regulations.

Source: SecMarx — sebi:WTMN/29/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.