sebi:WTMO/27/MIRSD/3/04

SEBI · SEBI · 2003-06-04 · T. M. Nagarajan, Whole Time Member

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Facts / Headnote

Certificate of registration No.INB090281519 cancelled

Provisions invoked

• s. 19

Regulations

• Reg. 13
• Reg. 15
• Reg. 16(1)
• Reg. 16(5)
• Reg. 25

Parties

• P M Pavithran (Trade Name: M/s Chaitra Associates)

Holding

The certificate of registration No.INB090281519 granted to P M Pavithran (Trade Name: Chaithra Associates) is cancelled with immediate effect for ceasing to be a member of the Cochin Stock Exchange, thereby failing to satisfy a condition subject to which registration was granted.

Full text

Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ ORDER Order under Regulation 16(5) 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 proceedings against P M Pavithran, erstwhile member of Cochin Stock Exchange. WTMO/27/MIRSD/3/04  1.0             Background 1.1 PM Pavithran (Trade Name: M/s Chaitra Associates and hereinafter referred to as “the said broker”) was a member of the Cochin Stock Exchange (hereinafter referred to as The said broker was granted certificate of registration No.INB090281519. 1.2             The Securities and Exchange Board of India (hereinafter referred to as “SEBI”) was informed by CSE vide their letter dated 4.6.2003 that the said broker has been d defaulter. 2.0 Summary Proceedings 2.1 In pursuance of the said letter, vide order dated 14.7.2003, an Enquiry Officer was appointed under Regulation 16(1) of the SEBI (Procedure for holding enquiry by Enquiry Off imposing penalty) Regulations, 2002 (hereinafter referred to as “the enquiry regulations”) to enquire into the contravention, if any, by the said broker of Regulation 25 of t (Stock Broker and Sub Broker) Regulations, 1992 (hereinafter referred to as “the broker regulations”) and Rule 4 of the SEBI(Stock Broker and Sub Broker) Rules, 1992 (her referred to as “the broker rules”). The Enquiry Officer submitted his report to SEBI on 6.2.2004. 2.2             In

3.1.2.4            I have already found in Para 3.1.1 that the said broker has ceased to be a member of NSE and that thereby they have violated one of the conditions of registration. In above, I find that a major penalty of cancellation of the certificate of registration is liable to be imposed on the said broker. 4.0             Order 4.1 In the light of the findings mentioned above, I, in exercise of powers conferred on me under Section 19 read with Regulation 16(5) of the enquiry regulations, hereby ca certificate of registration No.INB090281519 granted to P M Pavithran; Trade Name: Chaithra Associates This order shall come into effect  immediately. Date: March 8, 2004 WHOLE TIME MEMBER Place: MUMBAI  SECURITIES AND EXCHANGE BOARD OF INDIA

one of the conditions subject to which registration was granted to him as a stock broker viz. that he should hold membership of a recognized stock exchange under Rule 4(a) of the broker rules and has therefore recommended that the certificate of registration granted to the said broker be cancelled. 3.0 Consideration of issues 3.1 I have considered the facts of the matter, the report of the Enquiry Officer and other material on record. The following issues arise for consideration : 3.1.1 Whether the said broker has violated one of the conditions subject to which registration has been granted to them as a stock broker. 3.1.1.1 I note that the said broker has been declared a defaulter by CSE w.e.f. 20.5.1994 and that he has not been readmitted. I further note that as per item 38 (iv) of the Articles of Association of CSE, a member who has been declared as defaulter by the stock exchange shall cease to be a member of the exchange. 3.1.1.2 I note that Rule 4(a) of the broker rules provides that: “Conditions for grant of certificate to stock broker

Source: SecMarx — sebi:WTMO/27/MIRSD/3/04. 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.