(a) whether the SEBI has decided to take action against
intermediaries who have violated the code of ethics
announced by the regulator;
(b) if so, the details of the intermediaries who
have been found violating the code of ethics in the last three years; and
(c) the action taken by the Government against such intermediaries?
MINISTER OF FINANCE AND COMPANY AFFAIRS (SHRI JASWANT SINGH)
(a) to (c): A statement is placed on the Table of the House.
Statement referred to in the reply to Lok Sabha starred
question no. 457 by Dr. Ramesh Chand Tomar for 20th
December 2002 regarding `SEBI Action Against Intermediaries`.
(a): The Securities and Exchange Board of India (SEBI)
has intimated that all the regulations pertaining to
intermediaries have a separate section on Code of Conduct,
which contains clauses regarding professional conduct, due
diligence, honesty, avoidance of unethical soliciting
of business etc. In case of violation by intermediaries
of any of the provisions of the code of conduct, action is
taken against the intermediary in terms of provisions of
the relevant regulations which include warning, suspension
or cancellation of registration.
SEBI has formulated a code of ethics for directors
and functionaries of stock exchanges vide its
circular dated May 18, 2001, which the exchanges were
required to implement the same by August 2001.
(b) & (c): The details of action taken against the intermediaries
for non compliance with the regulations including non
compliance with code of conduct for specific intermediaries, is annexed.
As the code of ethics was to be implemented by exchanges
from August 2001, breach of the code of ethics for
earlier periods does not arise.
Annex referred to in the reply to Lok Sabha starred question no. 457 by Dr. Ramesh Chand Tomar for 20th December 2002 regarding `SEBI Action Against Intermediaries`.
Annexure
Period Sl No Action against Nature of intermediary Action taken
2001-2002
1 Giltedge Investment Banking Services Ltd. Merchant Banker Suspended 2 Giltedge Portfolio Management Services Limited Portfolio Manager Suspended 3 IL & FS Merchant Banker Warning 4 J M Morgan Stanley Merchant Banker Warning 5 Triumph Leasing & finance Ltd. Merchant Banker Warning 6 SRG Infotech Registrars to Issue & Share Transfer Agent Cancellation 7 Tamilnad Mercantile Bank Banker to Issue Suspension of registration 8 State Bank of Indore Merchant Banker Warning 9 Vysya Bank, H. B. Sarani Branch, Calcutta Banker to Issue Warning 10 Punjab National Bank Banker to Issue Warning 11 Central Bank of India Merchant Banker Warning 12 Canara Bank, Bhadra branch Banker to an Issue Suspension 13 Karvy Consultants Ltd Registrar & Share Transfer Agents Warning 14 ICICI Bank (formerly Bank of Madura), Bhadra Branch Banker to an Issue Warning 15 Ashika credit capital limited Merchant Banker Warning 16 Aryaman Financial Services limited Merchant Banker Warning 17 Systematix Corporate Services Limited Merchant Banker Warning
2000-2001
18 Sindhu Corporate Services Registrars to Issue & Share Transfer Agent Warning 19 Maheswari Datamatics Private Limited Warning 20 Cameo Share Registry Registrars to Issue & Share Transfer Agent Warning 21 Premium Capital Market & Investment Ltd. Merchant Banker Suspension 22 Indian Overseas Bank Merchant Banker Warning 23 XL Softech Systems Ltd. (formerly X L Softech Consultancy) P. Ltd.) Registrar to issue Warning 24 Ikon Visions Pvt. Ltd. Registrar to issue Suspension 25 Tamilnad Mercantile Bank, Mandvi Branch Bankers to Issue Warning 26 Bank of India, Cumballa Hill Branch Bankers to Issue Warning 27 United Western Bank, Prabhadevi Branch Bankers to Issue Warning 28 R&D Consultants P Ltd. Registrar & Share Transfer Agents Suspension 29 PCS Industries Ltd. Registrar & Share Transfer Agents Suspension 30 Oriental Bank of Commerce Bankers to an Issue Warning 31 Ankit Consultancy Ltd. Registrar to issue Suspension 32 Dena Bank Bankers to Issue Warning 33 Vysya Bank Ltd. Bankers to Issue Warning 34 Akshar Share Services Pvt. Ltd. Registrars to Issue & Share Transfer Agent Suspended
1999-2000
35 ABS Consultant Pvt. Ltd. Registrars to Issue & Share Transfer Agent Warning Letter 36 AMI Computers Ltd. 37 Canara Bank (Bhadra Branch) Bankers to Issue Suspension 38 Canara Bank (Thousand Lights Branch) Bankers to Issue Suspension 39 Computech International Limited Warning Letter 40 Hi Tech Share Tegistry Pvt.Ltd. Registrars to Issue & Share Transfer Agent Warning Letter 41 Integrated Enterprises India Ltd. Registrars to Issue & Share Transfer Agent Warning Letter 42 M N Dastur & Co. Ltd. Registrar to issue Warning 43 M/s. Choksh Securities Ltd. (presently Choksh Infotech Ltd. ) Registrar to issue Suspension 44 Punjab National Bank Debenture Trustee Warning Letter 45 Punjab National Bank (new cloth market branch) Bankers to Issue Suspension 46 Punjab National Bank (Raopur Branch) Bankers to Issue Suspension 47 S B & T International Ltd. (presently known as Nigam Finvest Ltd.) Merchant Banker Warning 48 SMIFS Capital Markets Ltd. Merchant Banker Warning 49 State Bank of Hyderabad Bankers to Issue Warning 50 State Bank of Saurashtra, Shahibaugh branch Bankers to Issue Suspension 51 Wisec Global Ltd. Registrars to Issue & Share Transfer Agent Warning Letter