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TMI Blog2019 (7) TMI 1894X X X X Extracts X X X X X X X X Extracts X X X X ..... e penalty imposed by the appropriate authority cannot be said to be unreasonable or excessive. The argument of the appellant was that even though the appropriate authority can suspend the trading membership of the member indulging in misconduct, it can be resorted to only when it falls within the concerned Bye-law such as Bye-law 8(a) relied upon by the respondent - which envisages that the trading member must conduct business in a manner prejudicial to the Exchange etc. The penalty could not have exceeded an amount of ₹ 1 lakh or 0.1% of the value of misuse, whichever is higher. These arguments have not been dealt with by the Appellate Tribunal at all. Resultantly, we deem it appropriate to set aside the impugned order and re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the appellant before this Court is that the penalty/fine could be imposed only in the context of Circular dated 27.06.2013. The relevant part of the circular read thus: 19. Improper use of funds raised by placing of clients securities with bank/any other financial institutions viz. funds not used for respective client obligation/margins. Mis-utilization of clients funds and/or securities. ₹ 1,00,000/- or 0.1% of the value of misuse whichever is higher. Thus, the appropriate authority could not have issued suspension of trading membership of the appellant. Further, the authority could not have imposed penalty/fine more than quantified in the circular extra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ining about a condition of demoralization in which prices will not fairly reflect market value, or It is then submitted that ample power is bestowed on the appropriate authority to suspend the trading membership of a member who indulges in prescribed misconduct. It is contended that no fault can be found with the order passed by the appropriate authority and has been rightly affirmed by the Appellate Tribunal. After considering the rival submissions, it is noticed that the appellant had specifically raised the issue about the appropriateness of the order suspending the trading membership of the appellant and also regarding the quantum of penalty imposed by the appropriate authority. That can be discerned from the contention recorded ..... X X X X Extracts X X X X X X X X Extracts X X X X
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