TaxTMI 
TaxTMI 
2004 (10) TMI 648
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....pellants which reads as follows: "I find that the said broker has committed several violations as observed above and has not taken due care and diligence in observance and compliance of the statutory requirements in conduct of its business as a stock broker. I find that the said broker has violated the condition of registration specified in rule 4(b) of SEBI (Stock Brokers and Sub-brokers) Rules, 1992. I find that the penalty as recommended by the enquiry officer may be reasonable in terms of Regulation 13(1)(b)(ii) read with Regulation 13(6)(b) of the Enquiry proceedings Regulations. Looking into the violations committed by the said broker, I am satisfied that to secure the proper management of the stock broker and also in the int....
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....ths. 3. A show cause notice dt. 4.12.2002 was issued by the Chairman, SEBI giving the appellant 15 days time to reply in terms of Regulation 13(5) of Penalty Regulations, which was served through NSE, which was received on 13.12.2002 by the appellant. This necessitate the appellant to request for an extension of time to file the reply. A personal hearing before the SEBI Chairman was held o 25.3.2003, during which, a detailed submission was made elaborating on the various written submissions made by the appellant. At the said hearing, a further detailed statement comparing the penalty recommended by the enquiry officer with the penalties imposed by the respondent in various other comparable instances was tabled before the Chairman, SEBI. ....
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....s in the Document Register (e) Client Agreement Form allegedly not properly filed (f) Alleged dealings with unregistered broker (g) Alleged non-segregation of clients funds to own funds (h) Alleged non-collection of margins 5. With regard to alleged non-maintenance of order book, it was submitted that maintenance of order book has recently been made optional by NSE. It was further submitted that these orders are promptly executed on the screen based trading system. It is no doubt true that the maintenance of order book has been done away with recently. 6. Regarding non-issuance of contract notes to Alok Ketan & Surekha Investments, it was submitted that this client of the appellant, Alok Ketan had expressly requested the appellant not....
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....t up till date. 3. I say that despite the injunction from the Hon'ble Securities Appellate Tribunal, the fact of the impugned order having been passed has led to the appellant suffering in his business, with financial institutions ceasing to deal with the appellant. 4. I say that regardless of interpretational differences with the respondent over certain provisions of SEBI Guidelines, NSE Bye Laws and SEBI Regulations, out of abundant caution, the appellant has now started following the same interpretation that SEBI has set out in the instant proceedings. The appellant also expressed sincere and honest apology for minor and insignificant lapses, such as the technical deficiencies in client registration forms, which hav....
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.... later after the inspection of books by an order dated 29.4.2002. Show cause notice was also issued after three months on 17.7.2002 and after the enquiry the respondent imposed a penalty of 4 months. The main contention of the appellant was that he should not be throttled out of business and should be permitted to rehabilitate himself. By suspending the registration for a period of 4 months would literally bring the business of the appellant to a stand still. Regulation 13 of the SEBI (Procedure for Holding Enquiry) Regulation, 2002 speaks about major penalties and minor penalties. One of the minor penalties as per 13(1)(a)(i) is warning or censure. We feel that as in more or less similar cases, the respondent was issued a strict warning. ....