The Hindu Business Line : SEBI revokes suspension on CSE member

THE Securities and Exchange Board of India has revoked its suspension on Mr Sunil Kayan, member of the Calcutta Stock Exchange, who was in 2003 restrained from accessing the securities market and prohibited from dealing in securities.

"Pursuant to completion of the enquiry proceedings, and keeping in view of the recommendation of enquiry officer and noting that ends of justice would be met by treating the period of restriction on the business activities of the broker since August 20, 2003 till date, being a period of almost two years, as sufficient penalty", an order issued by SEBI said.

It may be mentioned here that an enquiry officer in his report had found that the broker had traded in small quantities within the ambit of the exchange (using the same as benchmark price) to execute large orders outside the exchange.

It was alleged that the broker had acted as an unregistered sub-broker for three NSE members - Sanjay Bansal, GCM Securities Ltd and PKC Stock Broking. This was "evidenced through the trades carried out from the terminals of NSE and the presence of documents relating to these transactions in the brokers' premises".

The regulator has noted that Mr Kayan admitted the execution of unauthorised transactions but submitted that the penalty of suspension (for two years) would be harsh. He pleaded for a lenient view, stating that his registration was already under suspension since August 2003 resulting in substantial losses for him. His record of no regulatory action in the past and no pending investor complaints against him was also noted.

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