SEBI Vs. GAUTAM BAJORIA MEMBER CALCUTTA STOCK EXCHANGE
SECURITIES APPELLATE TRIBUNAL
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(1.) GAUTAM Bajoria is a member of Calcutta Stock Exchange and is a SEBI registered stock broker with a Reg. No. INB 030724412.
(2.) The eastern regional office of SEBI conducted an inspection of the member and submitted an inspection report on 15.07.02. It has been prima facie found in the said inspection that the member involved in off the floor transactions in violation, inter alia, of provisions of the Calcutta Stock Exchange Association Rules and Bye laws and Regulation 4 of SEBI (Prohibition of Fraudulent and Unfair Trade Practices in Securities Market) Regulations, Rule 4(b) of SEBI (Stock Brokers and Sub Brokers) Rules, 1992 (hereinafter referred to Stock Brokers Rule) and Regulation 7 of SEBI (Stock Brokers and Sub Brokers) Regulations, 1992 (hereinafter referred to as Broker Regulations) and code of conduct stipulated in the broker regulations and Rule 8(1)(f) of SC (R ) Rules. Therefore, Shri Ananta Barua had been appointed as Enquiry Officer vide orders of the Chairman dated 16.09.02 to enquire into the said violations.
The enquiry officer conducted the enquiry in terms of the order appointing the enquiry and Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 (hereinafter called the said regulations) submitted his report on 07.05.2003. In his report the enquiry officer found the member guilty of indulging in off floor transactions in violation of SEBI Circular dated 14.09.1999 and indulging in financing transactions in violation of Rule 8(1) of SC(R) Rules, 1957. The enquiry officer recommended that the Certificate of Registration of the member be suspended for a period of one year.
(3.) A show cause notice under Regulation 13(2) of SEBI (Procedure Regulations), 2002 was issued to the member on 20.05.03 forwarding therewith a copy of the enquiry report with an advise to show cause as to why the penalty recommended by the enquiry officer should not be imposed. It was indicated in the said show cause notice that the member should reply to the show cause notice within 15 days of the receipt and to intimate in writing as to whether the member desire a personal hearing. The said show cause notice was delivered to the member through Calcutta Stock Exchange, the member acknowledged the receipt on 28.05.03.;
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