IN THE SECURITIES APPELLATE TRIBUNAL
MUMBAI
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Date of Hearing
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13.12.2005
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Date of Decision
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13.12.2005
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In the matter of :
Appeal No. 94 of 2005
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Marg Holdings Finance & Securities Ltd.,
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Appellant – Represented by Mr. K. Ravi, Advocate
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Versus
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Securities & Exchange Board of India.
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Respondents –Represented by
Mr. Vivek Menon, Advocate..
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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 final hearing with the consent of both the parties.
2. The appellant challenges the order passed by SEBI cancelling the Certificate of Registration granted to the appellant on the grounds that the appellant was expelled by OTCEI with effect from May 25, 2004 and SEBI had been informed about it. Regulation 27 of Securities & Exchange Board of India (Stock Brokers and Sub Brokers) Regulations, 1992 clearly stipulates that SEBI has no alternative except to cancel registration of a member who ceases to be a member of the Stock Exchange. However, it is submitted by the learned counsel for the appellant that the appellant has approached the Stock Exchange for restoration of membership since the appellant was abducted by naxalites and was in their custody for 45 days and was, therefore, not able to defend his case. It is also submitted by the learned counsel for the appellant that an application is pending before the stock exchange for revival of the membership.
3. In the event the stock exchange revives the membership, it would be open to the appellant to approach SEBI also for restoration of his membership in accordance with law. All contentions left open.
Appeal disposed of accordingly.
No order as to costs.
Justice Kumar Rajaratnam
Presiding Officer
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R. N. Bhardwaj
Member
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C. Bhattacharya
Member
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