Regulation 27 - Liability for action under the Securities and Exchange Board of India (Intermediaries) Regulations, 2008 - Securities and Exchange Board of India (Stock Brokers) Regulations, 1992

1 [Liability for action under the 3 [Securities and Exchange Board of India (Intermediaries) Regulations, 2008]. 27. A stock broker or a sub-broker shall be liable for any action as specified in 2 [Chapter V of the Securities and Exchange Board of India (Intermediaries) Regulations, 2008] including suspension or cancellation of his certificate of registration as a stock broker or a sub-broker 6 [ **** ] , if he- (i) ceases to be a member of a stock exchange; or (ii) has been declared defaulter by a stock exchange and not re-admitted as a member within a period of six months; or (iii) surrenders his certificate of registration to the Board; or (iv) has been found to be not a fit and proper person by the Board under these or any other regulations; or (v) has been declared insolvent or order for winding up has been passed in the case of a broker 7 [ **** ] being a company registered under the 4 [ Companies Act, 2013 ] ; or (vi) or any of the partners or any whole-time director in case a broker 7 [ **** ] is a company registered under the 5 [ Companies Act, 2013 ] has been convicted by a court of competent jurisdiction for an offence involving moral turpitude; or (vii) fails to pay fee as per Schedule III of these regulations; or (viii) fails to comply with the rules, regulations and bye-laws of the stock exchange of which he is a member; or (ix) fails to co-operate with the inspecting or investigating authority; or (x) fails to abide by any award of the Ombudsman or decision of the Board under the Securities and Exchange Board of India (Ombudsman) Regulations, 2003; or (xi) fails to pay the penalty imposed by the Adjudicating Officer; or (xii) indulges in market manipulation of securities or index; or (xiii) indulges in insider trading in violation of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992; or (xiv) violates Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003; or (xv) commits violation of any of the provisions for which monetary penalty or other penalties could be imposed; or (xvi) fails to comply with the circulars issued by the Board; or (xvii) commits violations specified in regulation 26 which in the opinion of the Board are of a grievous nature. ] ******* 1 Regulations 25 to 28 substituted for regulation 25 by the SEBI (Stock Brokers and Sub-brokers) (Amendment) Regulations, 2003, w.e.f. 20-11-2003. 2 Substituted for SEBI(Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 by the SEBI (Intermediaries) Regulations, 2008, w.e.f. 26-05-2008. 3. Substituted vide Notification No. SEBI/LAD-NRO/GN/2021/14 dated 30-03-2021 before it was read as Enquiry Proceeding Regulations 4. Substituted vide Notification No. SEBI/LAD-NRO/GN/2021/14 dated 30-03-2021 before it was read as Companies Act, 1956 5. Substituted vide Notification No. SEBI/LAD-NRO/GN/2021/14 dated 30-03-2021 before it was read as Companies Act, 1956 6. Omitted vide Notification No. SEBI/LAD-NRO/GN/2018/27 dated 30-07-2018 w.e.f. 01-04-2019 before it was read as , as the case may be 7. Omitted vide Notification No. SEBI/LAD-NRO/GN/2018/27 dated 30-07-2018 w.e.f. 01-04-2019 before it was read as or sub-broker