sebi:WTMN/43/MRD/6/04
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Facts / Headnote
Certificate of registration No. INB 200831730 cancelled with immediate effect
Provisions invoked
- s. 19
Regulations
- Reg. 15
- Reg. 16(1)
- Reg. 16
- Reg. 13(1)
- Reg. 16(5)
- Reg. 27
- Reg. 13(6)(b)
Parties
- M/s. Karun Securities Pvt. Ltd
Holding
The certificate of registration No. INB 200831730 granted to M/s. Karun Securities Pvt. Ltd. as a stock broker is cancelled with immediate effect for ceasing to be a member of a recognized stock exchange (OTCEI) after being declared defaulter and not readmitted.
Full text
Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ Order Against M/S Karun Securities Pvt Ltd Jun 30, 2004 | Orders : Orders of Chairman/Members SECURITIES AND EXCHANGE BOARD OF INDIA
It has been brought to the notice of SEBI that KSPL was declared defaulter by OTCEI on April 04, 2002 and was not readmitted. An enquiry officer was therefore appointed vide
A stock broker or a sub-broker shall be liable for action as specified in the securities and exchange board of India ( procedure for holding enquiry by enquiry officer and imposing penalty) Regulations, 2002 including suspension or cancellation of certificate of registration as a stock broker or a sub-broker, as the case may be, if he – i) ceases to be a member of a stock exchange; or ii) has been declared defaulter by a stock exchange and not readmitted as a member within a period of six months. 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. I therefore find that the said broker has failed to comply with basic requirement of being a member of a stock exchange. Therefore, the registration of the broker is liable to be cancelled. I further note that Regulation 13(1) (b) provides for major penalties which include cancellation of certificate of registration. In this regard, I note that in terms of Regulation 15 read with Regulation 16 of the Enquiry Regulations where a stock broker ceases to be a member of a recognized stock exchange or has been declared defaulter in relation to the transactions at such exchange, summary procedure may be followed, without holding an enquiry. Therefore, in exercise of powers conferred upon me under Section 19 of the SEBI Act read with Regulation 16(5) of the Enquiry
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Source: SecMarx — sebi:WTMN/43/MRD/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.