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Triumph Retail Broking Services Ltd., In Re (Registration Fees)

SEBI

Dec 7, 2009

Judgment

Subsequent
References

CaseIQ

Smart Summary (Beta)

Analyst Summary of the Provided Legal Opinion

Factual and Procedural Background

By an Order dated August 11, 2005, SEBI appointed Officers under Regulation 16(1) of the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 to conduct summary proceedings against 101 stock brokers who had defaulted in payment of registration fees. The Officers submitted reports recommending suspension of the certificates of registration of those brokers for six months or until the outstanding registration fees were paid, whichever was later. The decision-maker considered those recommendations, noted that the 2002 Regulations had been repealed and replaced by the SEBI (Intermediaries) Regulations, 2008, and exercised powers under Section 19 of the SEBI Act, 1992 read with Regulation 33-B(5) and (6) of the SEBI (Intermediaries) Regulations, 2008, to suspend the certificates of registration of the listed 101 stock brokers until the outstanding registration fees were fully paid. The Order also directed that affected sub-broker registrations (where applicable) remain suspended and that copies of the Order be served on the respective Stock Exchanges; the Order comes into force after expiry of 21 days from its date.

Legal Issues Presented

The opinion addresses a procedural matter and does not frame distinct legal issues.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

Background action: Officers were appointed under the 2002 Regulations to conduct summary proceedings in respect of 101 brokers who defaulted on registration fee payments, and the Officers submitted reports recommending suspension of registration certificates for six months or until payment.
Consideration of recommendations: The decision-maker considered those reports and the recommendations of the Officers.
Determination of appropriate sanction: Rather than adopting the six-month time-limited suspension recommended by the Officers, the decision-maker concluded that "the ends of justice would be met" by suspending the certificates of registration for each listed broker until the corresponding outstanding registration fees are fully paid. This reflects a decision to tie the duration of the sanction to compliance (payment) rather than to a fixed temporal penalty.
Regulatory basis: The decision-maker expressly noted that the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 had been repealed and replaced by the SEBI (Intermediaries) Regulations, 2008. The suspension order was made in exercise of powers under Section 19 of the SEBI Act, 1992 read with Regulation 33-B(5) and (6) of the SEBI (Intermediaries) Regulations, 2008.
Effect on related registrations: Where any of the listed stock brokers were registered as sub-brokers of subsidiaries of Stock Exchanges in terms of Circular No. SMDII/POLICY/CIR-37/99 dated November 26, 1999, the decision-maker ordered that those sub-broker registrations shall also remain suspended until the outstanding registration fee is fully paid.
Administrative directions and commencement: The Order directs that copies be served on the respective Stock Exchanges for necessary action and states that the Order will come into force on the expiry of 21 days from the date of the Order.

Holding and Implications

Holding: The certificates of registration of the listed 101 stock brokers are suspended until the respective outstanding registration fees are fully paid, pursuant to Section 19 of the SEBI Act, 1992 read with Regulation 33-B(5) and (6) of the SEBI (Intermediaries) Regulations, 2008.

Implications:

The direct effect is suspension of the certificates of registration of each of the 101 named stock brokers until payment of their outstanding registration fees is made in full.
Where applicable, the registration of those entities as sub-brokers (per Circular No. SMDII/POLICY/CIR-37/99 dated November 26, 1999) is also suspended until the outstanding registration fees are fully paid.
Copies of the Order are to be sent to the respective Stock Exchanges for them to take necessary action in accordance with the suspension.
The Order comes into force after expiry of 21 days from the date of the Order.
The opinion does not discuss broader legal or doctrinal implications or purport to establish a new precedent; it records an administrative sanction tied to compliance with outstanding fee obligations.

Show all summary ...

1. Vide Order dated August 11, 2005 under Regulation 16(1) of the extant SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002, SEBI had appointed Officers to conduct summary proceedings, interalia, against the following 101 stock brokers who had defaulted in the payment of registration fees:

SL. NO. STOCK BROKER REGN. NO. STOCK EXCHANGE 1. Triumph Retail Broking Services Ltd. INB011152130 BSE 2. Tropical Securities & Investments Pvt. Ltd. INB010993738 BSE 3. Subhash Karkhanis Share & Stock Brokers Pvt. Ltd. INB010991339 BSE 4. George Antony INB090272019 Cochin 5. P.P Ramachandran INB090268219 Cochin 6. Shreyam Shares & Securities INB090637238 Cochin 7. Smitha Gopinathan INB090810413 Cochin 8. Sony P. Panakkal INB090279414 Cochin 9. Sudha Soman INB090296514 Cochin 10. Sunil O.G INB090281118 Cochin 11. Susan John INB090269316 Cochin 12. Susan John INB090702518 Cochin 13. T. Chintha Devi INB090271118 Cochin 14. T.K Narayanan Thampi INB090266612 Cochin 15. Tarak V. Parikh INB090959619 Cochin 16. Johny Mathew INB090270413 Cochin 17. Joy Eluvathingal INB090297210 Cochin 18. Alok Kumar Chowdhary INB031036511 Calcutta 19. SLA Securities Ltd. INB030878837 Calcutta 20. MSV Share & Stock Brokers Ltd. INB030943039 Calcutta 21. Shreenath Kapoor INB030057614 Calcutta 22. Santosh Kumar Chaudhary INB030952012 Calcutta 23. Arun Kumar Jain INB160179017 Jaipur 24. Ashok Agarwal INB160218713 Jaipur 25. Ashok Advani INB160844717 Jaipur 26. Arun Anand INB160840418 Jaipur 27. Ashwani Kumar INB160178517 Jaipur 28. Arvind Kumar Gupta INB160201113 Jaipur 29. Ram Kishore Rawat INB160552513 Jaipur 30. Babu Lal Agrawal INB161059317 Jaipur 31. Chandra Kanta Lodha INB160179419 Jaipur 32. Chandrashekhar Chaudhry INB160194316 Jaipur 33. Dinesh Chand Gupta INB160206314 Jaipur 34. Anand Prakash Batra INB160197117 Jaipur 35. Dharm Chand Patolia INB160220016 Jaipur 36. Aditya Chaturvedi INB160220613 Jaipur 37. Shyam Sunder Mundra INB160190613 Jaipur 38. Jawahar Lal Moondra INB160843219 Jaipur 39. Makhan Lal Basaweka INB160182915 Jaipur 40. Mahendra Kumar INB160197215 Jaipur 41. Kailash Chand Badaya INB160222014 Jaipur 42. Nancy Kaul INB160585315 Jaipur 43. Manoj Kumar Sethi INB160847812 Jaipur 44. Manoj Kumar Pareek INB160750310 Jaipur 45. Manoj Agarwal INB160220418 Jaipur 46. Manmohan Kumar Nagpal INB160218312 Jaipur 47. Manisha Jain INB160846617 Jaipur 48. Kushagra Investments & Consultants Pvt. Ltd. INB160952933 Jaipur 49. Krishan Kumar Khandelwal INB160181818 Jaipur 50. Krishan Gopal Khandelwal INB160195510 Jaipur 51. Gulab Rai Chandani INB160842513 Jaipur 52. Govind Sharan Khandelwal INB160180711 Jaipur 53. Vinod Singhvi INB160816519 Jaipur 54. Kamal Kasliwal INB160221818 Jaipur 55. Meenu Arora INB121183918 Ludhiana 56. Harmeet Singh Gulati INB120788918 Ludhiana 57. Manjit Singh Makkar INB120704119 Ludhiana 58. Inderjeet Singh Pahwa INB120304716 Ludhiana 59. Garg Fincap Limited INB120902237 Ludhiana 60. Hans Raj Pahwa INB120304618 Ludhiana 61. Om Prakash Arora INB120305911 Ludhiana 62. Prem Behari Gupta INB120631513 Ludhiana 63. Rajinder Singh Thukral INB120307214 Ludhiana 64. Ram Paul INB120817018 Ludhiana 65. Rita Financial Services Ltd. INB120923236 Ludhiana 66. S.D.L Securities Ltd. INB121031737 Ludhiana 67. Sandeep Kumar INB121001513 Ludhiana 68. Sohan Lal Verma INB120315118 Ludhiana 69. Sunita Rani Uppal INB120712219 Ludhiana 70. Sunita Relan INB120316215 Ludhiana 71. Usha Garg INB120958810 Ludhiana 72. Vipan Kumar Sharma INB120317713 Ludhiana 73. Keshav Rai Dhanda INB120965118 Ludhiana 74. Optimax Capital Services Pvt. Ltd. INB200897930 OTCEI 75. P.T Krishnadas INB200274915 OTCEI 76. Parika Investments Private Limited INB200892132 OTCEI 77. PAV Advertisers & Marketers Pvt. Ltd. INB200899536 OTCEI 78. Pinakini Fin. & Investments I. Ltd. INB200767039 OTCEI 79. Praxton Associates Private Limited INB200899634 OTCEI 80. Premier Securities Limited INB200686539 OTCEI 81. Pushpak Financial Services Ltd. INB200865834 OTCEI 82. RIM Securities Ltd. INB200811437 OTCEI 83. Sanat M. Dalal Securities Pvt. Ltd. INB200984533 OTCEI 84. Samir Sudhir Porecha INB200872310 OTCEI 85. Sakthi Finance Ltd. INB200609135 OTCEI 86. Scope Securities India Pvt. Ltd. INB200630535 OTCEI 87. Rohit Mangla INB200609616 OTCEI 88. Suresh Kumar Agarwal INB100830910 Uttar Pradesh 89. Veena Pandey INB100380714 Uttar Pradesh 90. U.S Chaturvedi INB100379715 Uttar Pradesh 91. Tajinder Pal Singh INB100379314 Uttar Pradesh 92. Tarun Kumar Bangar INB101039510 Uttar Pradesh 93. Pushpa Devi Rathi INB100365112 Uttar Pradesh 94. Sushil Kumar Goenka INB100382614 Uttar Pradesh 95. Viresh Bharatiya INB100382311 Uttar Pradesh 96. Sanjay Agarwal INB100372017 Uttar Pradesh 97. Ramesh Chander Jhanwar INB100370313 Uttar Pradesh 98. Santosh Mittal INB100373212 Uttar Pradesh 99. Sanjay Kesarwani INB101039619 Uttar Pradesh 100. Santosh Kumar Jain INB100373114 Uttar Pradesh 101. Vinay Kumar Manchanda INB101034115 Uttar Pradesh

2. The Officers have submitted their reports in respect of aforesaid 101 stock brokers recommending suspension of certificates of registration granted to them for a period of 6 (six) months or till such time the outstanding registration fees is paid, whichever is later.

3. I have considered the recommendations of the Officers. I, however, consider it appropriate that ends of justice would be met if the certificates of registrations are suspended till the time the outstanding registration fees are fully paid by the stock brokers.

4. I note that the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 have since been repealed and replaced by the SEBI (Intermediaries) Regulations, 2008.

5. In the facts and circumstances of the case, I, in exercise of the powers conferred upon me under Section 19 of the SEBI Act, 1992 read with Regulation 33-B(5) and (6) of the SEBI (Intermediaries) Regulations, 2008, hereby suspend the certificates of registration of the aforesaid 101 stock brokers till the time outstanding registration fees is fully paid.

6. I note that some of these stock brokers are registered as sub brokers of the subsidiaries of the Stock Exchanges in terms of Para 2 of the Circular No. SMDII/POLICY/CIR-37/99 dated November 26, 1999. In view of the suspension as ordered in Para 5 above, their registration as sub-broker shall also remain suspended till the time outstanding registration fee is fully paid by the stock brokers.

7. A copy of this Order shall be served on the respective Stock Exchanges of which these 101 stock brokers are members and/or sub brokers for necessary action.

8. This Order shall come into force on the expiry of 21 days from the date of this order.