The Securities and Exchange Board of India has cancelled the licences of 35 stock brokers of which 8 members belong to NSE and 27 members belong to OTCEI. These stock
brokers were expelled from their activities. It was alleged that these brokers had also failed to pay fees to SEBI. Consequent to the expulsion, they also failed to comply with one of the condition for the grant of certificate of registration as specified in 4(a) of Securities Exchange Board of India (Stock Brokers and Sub Brokers) Rules, 1992 (now repealed on September 07, 2006). Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) Rules, 1992 is hereinafter referred to as the Rules for the sake of brevity. The provisions of the above said rules had been simultaneously specified in the Securities and Exchange Board of India (Stock Broker and Sub-Broker) Regulation 1992. The brokers have failed to pay fees to SEBI as required under rule 4(d) of the said rules.These brokers are required to hold a membership certificate with NSE in order to get a license from SEBI as mentioned under para 1.1 in terms of
rule 4(a) of the above said rules. Secondly, the brokers have to pay the SEBI fees mentioned
under rule 4(d) of the said rules. Since these brokers no longer fulfill this essential criterions
and therefore their certificates of registration are liable to be cancelled.
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