Sebi Vs. Nokia Finance International Pvt. - Court Judgment

Excerpt:

.....against the broker. in her report, the enquiry officer has summed up her findings / recommendations as under: on a cumulative analysis of the facts above stated in tandem with the evidence available on record, i am of the considered opinion that no proceedings need be further initiated against nokia in the present matter:.4. i have examined and considered all the facts and circumstances of the case as also the findings/recommendations of the enquiry officer in the report. accordingly, i have come to the conclusion that the enquiry officer has rightly concluded that the charges against the broker have not been established with reasonably good evidence.5. in view of the facts and circumstances as mentioned hereinabove, i concur with the recommendations of the enquiry officer. the enquiry officer however while giving her recommendation has also observed that in regard to the allegations against the broker such as improper maintenance of books and records, an inspection may be conducted by sebi. further at the same time, this order will not prejudice any further course of action to be taken after the inspection of books and records of the broker.6. accordingly, in exercise of.....

Judgment:

1. Securities and Exchange Board of India (hereinafter referred to in short as "SEBI") conducted investigation into the impugned advertisement which appeared in the Economic Times on July 16, 2002 calling upon BSE listed companies interested in market making and maximizing the capitalization of company's equity to contact the advertiser. The advertiser was stated to be a registered broker of a recognized stock exchange with contact e-mail and telephone number.

2. After considering the investigation report, SEBI appointed an Enquiry Officer initially vide Order dated March 23, 2004 and later vide order dated November 08, 2004 to enquire into the violations allegedly committed by the broker M/s Nokia Finance International Pvt Ltd (hereinafter referred to in short as "the Broker") under the provisions of SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992 and SEBI Circular SMD/SED/CIR/93/23321 dated November 28, 1993.

3. The Enquiry Officer submitted a report dated April 29, 2005. I have perused the said report and the other material documents relied upon by the Enquiry Officer to arrive at a conclusion in the proceedings against the Broker. In her report, the Enquiry Officer has summed up her findings / recommendations as under: On a cumulative analysis of the facts above stated in tandem with the evidence available on record, I am of the considered opinion that no proceedings need be further initiated against Nokia in the present matter:.

4. I have examined and considered all the facts and circumstances of the case as also the findings/recommendations of the Enquiry Officer in the report. Accordingly, I have come to the conclusion that the Enquiry Officer has rightly concluded that the charges against the Broker have not been established with reasonably good evidence.

5. In view of the facts and circumstances as mentioned hereinabove, I concur with the recommendations of the Enquiry Officer. The Enquiry Officer however while giving her recommendation has also observed that in regard to the allegations against the broker such as improper maintenance of books and records, an inspection may be conducted by SEBI. Further at the same time, this order will not prejudice any further course of action to be taken after the inspection of books and records of the Broker.

6. Accordingly, in exercise of the powers conferred upon me in terms of Section 19 of the Securities and Exchange Board of India Act, 1992 read with Regulation 13(4) of SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002, I hereby dispose off the enquiry proceedings with above observations without imposing any penalty or direction against the Broker M/s Nokia Finance International Pvt Ltd.