Mumbai; Sebi on Tuesday suspended registration of Dynamic Stock Broking for three months for non-compliance with various stock market regulations.
The market regulator had conducted an inspection of books and other records of Dynamic Stock for the period April 1, 2008 to March 31, 2009. The inspection was carried out from May 4-8, 2009.
The inspection revealed "several non-compliances of rules, regulations, guidelines and circulars issued by Sebi and the BSE by Dynamic and procedural and regulatory lapses in its functioning".
Subsequently, the market regulator had initiated proceedings against Dynamic Stock and also appointed a Designated Authority (DA) to enquire about the alleged lapses.
In an order on Sunday, Sebi Whole Time Member Rajeev Kumar Agarwal said "the certificate of registration granted to Dynamic Stock Broking", a member of BSE, was being suspended for a period of three months.
According to Agarwal, some of the contraventions such as allowing use of its terminal by persons who are not at the pay-roll and discrepancies in the KYC processes, as established against the noticee (Dynamic Stock), pose a prudential threat to the integrity and functioning of the securities market.
In his report dated March 30, 2010, the DA had recommended that the certificate of registration of Dynamic be suspended for a period of three months.
"In my view, considering the facts and circumstances of this case and taking into account the interests of the investors, the action as recommended by the Designated Authority (DA) in his Report is commensurate with the lapses, non-compliances, contraventions and violations committed by the noticee," the order said.