Cancellation of Certificate of Registration of TH Vakil Shares as Depository Participant

SECURITIES AND EXCHANGE BOARD OF INDIA

ORDER

IN THE MATTER OF CANCELLATION OF CERTIFICATE OF REGISTRATION OF T.H.VAKIL SHARES & SECURITIES PVT.LTD, AS DEPOSITORY PARTICIPANT.

WTMN/ 80 /MIRSD/ 8 / 2004

 
1. T.H.Vakil Shares & Securities Pvt. Ltd (hereinafter called as VSSPL) was a Depository Participant of Central Depository Services (India) Ltd. (hereinafter referred to as CDSL") registered with the Securities and Exchange Board of India (hereinafter referred to as "SEBI") under Certificate of Registration No.IN-DP-CDSL-198-2002 dated November 29, 2002.

 

2. VSSPL surrendered its Certificate of Registration as Depository Participant of CDSL in February 2004. CDSL has approved the same vide letter dated March 11, 2004 to SEBI with a recommendation to cancel the same.

 

3. In terms of Regulation 15 (i) of the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 (hereinafter referred to as "Enquiry Regulations"), summary procedure under regulation 16 ibid may be followed where an intermediary surrenders its certificate of registration to the Board. Accordingly, as per summary procedure, an enquiry officer was appointed vide order of the Member dated June 14, 2004 to submit a report. The enquiry officer submitted his report on July 22, 2004.

  

4. I have considered the facts of the matter and report of the enquiry officer and other material on record. Enquiry Officer had issued a notice to VSSPL vide letter dated June 22, 2004 giving an opportunity for written submissions. It was also mentioned in the notice that if no reply is received the matter will be proceeded in accordance with the provisions of the said regulations. However no reply was received from VSSPL for the aforesaid notice. It is noted that CDSL had recommended acceptance of the application of VSSPL for surrender of Certificate of Registration as Depository Participant and cancellation of the registration after all conditions under the bye laws were found fulfilled.

 

5. The enquiry officer has also reported that it was confirmed that there were no adverse comments against VSSPL pending with CDSL. The enquiry officer has also reported that there were no adverse comments against VSSPL on records with SEBI and that there were no outstanding dues from VSSPL as a Depository Participant to SEBI. The enquiry officer has, therefore, recommended acceptance of the surrender of certificate of registration of VSSPL and cancellation of the registration. I agree with the recommendation.

 

6. In view of the foregoing and in exercise of powers conferred upon me under Section 19 of the SEBI Act read with Regulation 16(5) of the Enquiry Regulations, I hereby direct that the surrender of Certificate of Registration by T.H.Vakil Shares & Securities Pvt. Ltd be accepted and the said Certificate be cancelled.

 

This order shall come into effect immediately.