2012 (7) TMI 884

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....r The Respondent : Sachin Chandarana and Ms. Shambhavi Arjunwadkar ORDER P.K. Malhotra, Member & Officiating Presiding Officer - The present appeal has been filed against the Order dated December 9, 2011 passed by the National Stock Exchange of India Limited (for short NSE) against the appellant imposing a monetary penalty of Rs. 45,000/- for certain irregularities noticed by NSE during the ....

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....tes are not sent directly to the clients. They are sent to the sub-brokers who in turn give them to the clients - penalty imposed is Rs. 10,000. (iii) Trading Member has not displayed its notice board at the sub-broker's office in accordance with NSE Circular - penalty imposed Rs. 10,000. 3. Against the aforesaid order, the appellant filed a review petition which was considered by the In....

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....red by the appellant in respect of the above violations, the committee imposed above penalties as laid down in the said circular. 5. We have heard the authorized representative of the appellant and the learned counsel for NSE and are of the view that the appeal deserves to be allowed. The first irregularity is with regard to maintaining one ledger account for the clients who are also acting as ....

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....e. The case of the appellant is that it was maintaining ledger account for the clients who are also acting as their sub-brokers. There is no clarity in the said regulation that even in respect of client who is acting in dual capacity i.e., as a client and as a sub-broker of the broker, separate account is to be maintained in respect of transactions as client and as sub-broker. After NSE directed t....