Apr 23, 2009
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Orders :
Orders of Chairman/Members
WTM/MSS/MIRSD/01/2009
SECURITIES AND EXCHANGE BOARD OF INDIA, MUMBAI
ORDER
UNDER REGULATION 28 READ WITH 29 OF THE SEBI (INTERMEDIARIES) REGULATIONS, 2008
IN THE MATTER OF SUMMARY PROCEEDINGS AGAINST THE BROKERS WHO DEFAULTED IN PAYMENT OF REGISTRATION FEES
1. Vide Order dated August 11, 2005 under Regulation 16(1) of the then extant SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002, SEBI initiated summary proceedings, inter alia, against 244 stock brokers of Hyderabad Stock Exchange, Mangalore Stock Exchange, Saurashtra Kutch Stock Exchange and Magadh Stock Exchange, as given in the Annexure to this order, who had defaulted in payment of registration fees. These regulations have since been repealed and replaced by the SEBI (Intermediaries) Regulations, 2008.
2. In the meanwhile, the recognition granted to the aforesaid Exchanges have either lapsed or been withdrawn. Consequently, the stock brokers of these Exchanges ceased to be the trading members and their registration with SEBI as stock brokers of these exchanges stand automatically cancelled. In view of this, summary proceedings initiated vide Order dated August 11, 2005 against the said 244 stock brokers have become infructuous.
3. I, therefore, in exercise of the powers conferred upon me under Section 19 of the SEBI Act, 1992 read with Regulation 28 and 29 of the SEBI (Intermediaries) Regulations, 2008, hereby dispose of the proceedings initiated vide Order dated August 11, 2005 against the said 244 stock brokers of aforesaid de-recognized stock exchanges.
4. This Order is being passed, without prejudice to SEBI’s right to recover the dues from the said 244 stock brokers, who shall continue to be liable to pay the dues to SEBI as per Schedule III of the SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992, till the date of such de-recognition.
This Order shall come into force with immediate effect.
M. S. SAHOO
WHOLE TIME MEMBER