Security by related concerns invalidated: spouse or sister guarantees sharing common ownership cannot be accepted as independent security. Securities prescribed under Rule 23(7) include personal security furnished by another registered dealer, but bonds executed by spouse/sister concerns that share a common proprietor or partner with the applicant constitute self-security and defeat the statutory purpose; such related-party securities must not be accepted by VATOs/AVATOs and strict compliance with this prohibition is required.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Security by related concerns invalidated: spouse or sister guarantees sharing common ownership cannot be accepted as independent security.
Securities prescribed under Rule 23(7) include personal security furnished by another registered dealer, but bonds executed by spouse/sister concerns that share a common proprietor or partner with the applicant constitute self-security and defeat the statutory purpose; such related-party securities must not be accepted by VATOs/AVATOs and strict compliance with this prohibition is required.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
