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In the matter of Richmond Securities Pvt Ltd

Aug 29, 2005
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Orders : Orders of SAT

IN THE SECURITIES APPELLATE TRIBUNAL

MUMBAI

 

Appeal No: 58 of 2005

 

Date of Hearing

29/08/2005

Date of Decision

29/08/2005

 

 

Appellant – Represented by:

Richmond Securities Pvt. Ltd.

Mr. Devanshu Desai, Advocate

Versus

 

 

Respondent- Represented by

Securities & Exchange Board of India

Mr. Vivek Menon, Advocate

Inter-Connected Stock Exchange of India Ltd.

Mr. J.J. Bhatt, Advocate

ISE Securities & Services Ltd.

     

 

CORAM

 

          Justice Kumar Rajaratnam, Presiding Officer

          C. Bhattacharya, Member

          R.N. Bhardwaj, Member

         

 

Per:    Justice Kumar Rajaratnam, Presiding Officer

 

1.                  The appeal is taken up for disposal with the consent of parties.

2.                  The appellant challenges the order passed by the Respondent No.1 dated 31/1/2005. By the impugned order the appellant’s certificate of registration as a broker and sub-broker was cancelled with immediate effect by effect. The facts briefly are:

3.                  That the appellant was a member of ICSEI, the second respondent herein.  The second respondent by its letter dated 24/06/2004 informed the appellant that that appellant has been expelled from ICSE w.e.f. 21/06/2004. Consequent to the above expulsion a show cause notice was issued against the appellant by SEBI and the appellant’s certificate was cancelled after considering the reply of the appellant. The Respondent No1, SEBI, has no alternative but to cancel the registration, if a person has been expelled from the Exchange, under the provisions of Rule 4(a) of SEBI (Stock Brokers and Sub-Brokers) Rules, 1992 which reads as under:

“4.       The Board may grant a certificate to a stock broker subject to the following conditions, namely:-

(a)       he holds the membership of any stock exchange.”

(b)       ……….”

4.                  Therefore unless the order passed by ICSE is set aside there is no occasion to SEBI to have reconsidered the matter.

5.                  In that view of the matter there is no merit in the appeal and we accordingly dismiss it. It is always open to the appellant to approach ICSE for review of the order, if permissible in law.

6.                  No order as to costs.

(Dictated and Pronounced in the Court)

 

                   (Justice Kumar Rajaratnam)

             Presiding Officer

(R.N.Bhardwaj)

Member

   (C. Bhattacharya)

Member

 

Place: Mumbai

Date:  29/08/2005

*/as