9911796707
TMI Blog2012 (7) TMI 884X X X X Extracts X X X X X X X X Extracts X X X X ..... mber Officiating Presiding Officer - The present appeal has been filed against the Order dated December 9, 2011 passed by the National Stock Exchange of India Limited (for short NSE) against the appellant imposing a monetary penalty of ₹ 45,000/- for certain irregularities noticed by NSE during the course of inspection of the books of account of the appellant. 2. The appellant is a publ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rn give them to the clients - penalty imposed is ₹ 10,000. (iii) Trading Member has not displayed its notice board at the sub-broker's office in accordance with NSE Circular - penalty imposed ₹ 10,000. 3. Against the aforesaid order, the appellant filed a review petition which was considered by the Internal Committee for Minor Actions of NSE (the committee) and after consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mittee imposed above penalties as laid down in the said circular. 5. We have heard the authorized representative of the appellant and the learned counsel for NSE and are of the view that the appeal deserves to be allowed. The first irregularity is with regard to maintaining one ledger account for the clients who are also acting as their sub-brokers. During the course of argument the learned cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccount for the clients who are also acting as their sub-brokers. There is no clarity in the said regulation that even in respect of client who is acting in dual capacity i.e., as a client and as a sub-broker of the broker, separate account is to be maintained in respect of transactions as client and as sub-broker. After NSE directed the appellant to maintain separate accounts in its dealings as a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant. We find merit in the argument of the appellant. The regulation also provides that a sub-broker shall render necessary assistance to his client in obtaining the contract note from the stock-broker. If the contract notes have been issued within the prescribed limit and the same were sent to the sub-broker, in our view, it does not amount to violation of any specific regulation that might have ..... X X X X Extracts X X X X X X X X Extracts X X X X
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