2019 (11) TMI 1559

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.... to review the earlier order of the DAC dated August 02, 2018 was rejected. In the result, the impugned order reiterates the monetary penalty of Rs. 15 lakhs and suspension of trading membership of the appellant from all segments of NSE for 5 days. 2. Facts relating to the matter have been brought out in an inspection conducted by respondent NSE on the appellant who is a trading member of NSE. The said inspection was conducted for the period from January 01, 2017 to September 07, 2017. Apart from imposing a consolidated monetary penalty of Rs. 50,000/- for the minor violations a show cause notice dated May 07, 2018 was issued to the appellant alleging a number of major violations and asking why penalty should not be imposed on the appellan....

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....ed counsel for the appellant further submitted that the allegation relating to accepting deposits from clients promising assured returns is not correct because it was short term unsecured loans taken from external sources to promote appellant's proprietary arbitrage and ALGO trading business. Regarding the third allegation it was submitted by the learned counsel for the appellant that a revised networth certificate has been produced which the DAC has noted in the impugned order itself and therefore no action is called for on the same. As regards the allegation of misrepresentation of data submitted to the stock exchange pertains to an earlier period also CA Certificate has been furnished certifying that no securities belonging to credit....

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....e, finding in the impugned order that the appellant has failed to abide by the Code of Conduct under the relevant regulations cannot be faulted and the appellants' arguments to the contradictory has no merit. On the issue of the penalty which includes a 5 days suspension, apart from a monetary penalty of Rs. 15 lakhs, the learned counsel for the respondent submitted that the magnitude of the offence in totality has been considered by the DAC and the reasons given for imposing such a penalty in paragraph 9 of the order of DAC dated August 02, 2018. 7. Having heard the learned counsel for the parties and having perused various documents produced before us we note that there is sufficient evidence against the appellant to prove that certa....