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TMI Blog2017 (2) TMI 1506X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant to be guilty of violating the norms required to be followed by a member of the exchange. In the present case Naveen Kumar Gupta, operating on behalf of the appellant had executed sale transactions without holding the scrips and in fact, the appellant has accepted that the sale obligations of Naveen Kumar Gupta were met by using securities of other clients. Thus, it is established that in the present case securities belonging to the clients of the appellants have been utilized to meet the pay in obligation of Naveen Kumar Gupta which is in gross violation of the code of conduct prescribed for members of the exchange. Reliance placed by the appellant on the Circular of NSE dated June 27, 2013 is totally misplaced. The said circ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alf of the appellant submitted that total ban/prohibition from trading for 5 days is erroneously imposed on the appellant in a casual, nonchalant and blas manner . He submitted that the decision of the DAC of NSE is in violation of NSE Circular dated June 27, 2013, because, as per that circular suspending the trading is not contemplated for the violations allegedly committed by the appellant. Counsel for the appellant further submitted that all remedial and corrective measures to ensure that the lapse, if any, found during inspection carried out by NSE does not recur again have been taken and hence the impugned order deserves to be quashed and set aside. 4. We see no merit in the above contentions. 5. During the course of regular in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant as recorded in the order of DAC of NSE dated October 25, 2016 reads thus:- Prrsaar s oral submissions before DAC 7. Prrsaar was represented by its Proprietor, Mr. Ved Prakash Gupta, who made the following oral submissions: a) He has been a Member in Commodity market since 2004 and in Capital market since 2009. He has worked in rural and semi-urban area. He has also authored a book. b) He admitted to all the violations pointed out in Exchange show cause notice dated November 4, 2015 and offered apologies to DAC for the inconvenience caused because of the same. c) Because of his ill health, he had handed over operations of the firm to NKG. NKG was a relative. Shri Ved Prakash Gupta came to know abou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation filed by the appellant before the DAC of NSE. Secondly, even if there are some discrepancies in the quantum of amounts moved from the clients beneficiary accounts, very fact that the appellant has moved funds and securities from the clients beneficiary accounts itself is sufficient to hold the appellant to be guilty of violating the norms required to be followed by a member of the exchange. 10. Apart from the above, in the present case Naveen Kumar Gupta, operating on behalf of the appellant had executed sale transactions without holding the scrips and in fact, the appellant has accepted that the sale obligations of Naveen Kumar Gupta were met by using securities of other clients. Thus, it is established that in the present case s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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