C. I. Gandhi v. SEBI
Case brief
What is this about?
The Securities Appellate Tribunal allowed the appeal of Chandrakant Gandhi StockBrokers Pvt. Ltd. against a Rs. 15,000 penalty imposed for failing to produce records during a SEBI inspection. The Tribunal set aside the order, holding the delay was caused by factors beyond the appellant's control, including computer failure and seizure of books by Income Tax authorities, and that the appellant acte
What did the court decide?
The appeal was allowed and the impugned adjudication order imposing a monetary penalty was set aside.
Before the Securities Appellate Tribunal Mumbai Appeal No 1/ 2000
In the matter of
Chandrakant Gandhi StockBrokers Pvt. Ltd. Appellant
Vs
Securities and Exchange Board of India Respondent
Present
Shri C.V. Mathrani Company Secretary For the Appellant Ms Poonam Bamba Division Chief (SEBI)
Mr CH Rajasekhar Reddy Legal Officer (SEBI) For the Respondent
ORDER
This appeal is directed against the order dated December 15,1999 made by the Adjudicating Officer, imposing a sum of Rs. 15, 000/- as penalty against the appellant.
The appellant is private limited company, holding a certificate of registration for carrying on the business of stockbrokers. Securities and Exchange Board of India (SEBI), which is empowered to regulate the activities of stock exchanges, market intermediaries, etc had decided to inspect the records of the appellant to verify as to whether the appellant was maintaining statutory records, complying the requirements of the SEBI Act, etc. and the following conditions of registration of the appellant as stock broker and communication to this effect was issued to the appellant.
Issues for consideration
3 issues framed by the court
Whether monetary penalty under section 15A of the SEBI Act can be imposed for a short delay in furnishing information during an inspection caused by computer failure.
Whether the provisions of section 15A apply to stock brokers in addition to specific penalties under section 15F.
Whether the appellant acted in conscious disregard of its obligation to produce records requested by SEBI.
Parties & counsel
- appellant
Chandrakant Gandhi StockBrokers Pvt. Ltd.
- respondent
Securities and Exchange Board of India
Coram
C. Achuthan
Case details
As recorded by the court registry
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