Capital markets watchdog Sebi today cancelled the registration of Ripendra Mehta, proprietor of sub-broker Corbett Ripe Securities, for violating stock broker regulations.
The Securities and Exchange Board of India (Sebi) found that Mehta had received some money and shares from a client for the purpose of trading and had not refunded the amount and shares deposited by the client.
The market regulator in an order today observed that "the noticee, despite being a Sebi registered sub-broker, failed to maintain high standards of integrity, promptitude and fairness and hence violated ...The broker regulations".
"...Hereby cancel the certificate of registration of the sub-broker viz Ripendra Mehta (trade name, Corbett Ripe Securities)," it added.
Among others, Sebi said that Mehta despite being a registered sub-broker with trade name Corbett Ripe Securities had accepted cheque in the name of unregistered entity 'Ripen Stock Broking' and shares in his personal demat account from the client for the purpose of trading, which was in violation of the norms.
The market regulator had initiated the probe after receiving a complaint in November 2010 from one Satpal K Yadav alleging that Ripendra Mehta received some money and shares from him for the purpose trading but had failed to refund the same.
