SECURITIES APPELLATE TRIBUNAL
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(1.) SHRI Sanjay Bansal (hereinafter referred to as "the said broker") is a member of The Guwahati Stock Exchange and a member of The Inter Connected Stock Exchange of India (hereinafter referred to as ICSE). He is also a stock broker registered with SEBI under Registration No. INB 131037112 and a sub broker registered with SEBI under Registration No. INS 231297511.
Inspection by SEBI
(2.) The Securities and Exchange Board of India (hereinafter referred to as SEBI) received information that Sunil Kayan(Trade Name :Sunil Kumar Kayan & Co.) (hereinafter referred to as "Sunil Kayan"), a stock broker registered with SEBI under Registration No.INB030668917 was indulging in illegal trading in securities. Whole Time Member, SEBI, vide order dated 13.8.2003 directed that an inspection of the office of Sunil Kayan be undertaken by SEBI. Pursuant to the order, inspection of the office of Sunil Kayan at 8, Lyons Range, Kolkatta - 700001 was undertaken on 14.8.2003.
1. In the course of inspection, it was noted that three trading terminals of the National Stock Exchange (hereinafter referred to as NSE) were being operated in the office of Shri Sunil Kumar Kayan. The inspecting officials were informed that two of the three trading terminals were given by the said broker.
2. It was also noted that there were around 40 persons present in the office of Sunil Kayan at the time of inspection and that these persons fled the premises upon seeing the inspection team.
The inspection team also made the following findings :
1. The trading terminals given to Sunil Kayan by the said broker were unauthorised.
2. Sunil Kayan had extended unauthorised trading terminals to various persons or entities.
3. Sunil Kayan had traded in certain scrips in quantities of one or two shares and such orders constituted around 70% of his total trades. Many such transactions entered into by Sunil Kayan on his own account as well as on account of his wife /others were found to be squared off by the end of the day. The net amount receivable in such transactions was between Rs. 0.70 to Rs. 4.33.
(3.) HANDWRITTEN /printed papers found in the office of Sunil Kayan showed that he had transacted in futures and options without having a valid registration from SEBI as a trading / clearing member on the Futures & Options segment of NSE.;
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