BEFORE THE SECURITIES APPELLATE TRIBUNAL
MUMBAI
Appeal No.3 of 2011

  Date of Decision :7.2.2011         

M. Meenaksi Sundram @ MM Sundram
115 V H Road,
Coimbatore.

                        …..Appellant  

Versus

Securities and Exchange Board of India
C4A, G Block, Bandra-Kurla Complex,
Bandra (E), Mumbai.

……Respondent

Mr. M. M. Sundram, Appellant in person.

Dr. Poornima Advani, Advocate with Ms. Amrita Joshi, Advocate for the Respondent.

CORAM : Justice N.K. Sodhi, Presiding Officer
S.S.N. Moorthy, Member

Per : Justice N.K. Sodhi, Presiding Officer (Oral)
One of the grounds on which the certificate of registration of the appellant as a
stock broker has been cancelled is that he ceased to be a member of the Coimbatore Stock
Exchange. Regulation 6A of the Securities and Exchange Board of India (Stock Brokers
and Sub-brokers) Regulations, 1992 (for short the Regulations) prescribes the conditions
for registration and one of them is that the stock broker should continue to hold the
membership of any stock exchange. The appellant is unable to satisfy us that he is a
member of any stock exchange in the country. What he contends is that his membership
card of the Coimbatore Stock Exchange was sought to be auctioned by that exchange and
he filed a civil suit against the exchange and the Securities and Exchange Board of India
(for short the Board) and obtained an ex-parte permanent injunction on
September 6, 1999. He further contends that on the basis of this court order, the
Coimbatore Stock Exchange reinducted him as a member. He is unable to produce any
document before us showing that he was reinducted. On the other hand, the learned
counsel for the respondent has placed the record before us showing that membership card
of the appellant had been auctioned by the stock exchange on September 11, 1996 and

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that it was purchased by one C. Chell Nagappan who then got registered with the Board
as a stock broker on May 4, 1998. We have perused the memorandum of appeal as well
and it is no where stated that the appellant had been reinducted as a member of the
Coimbatore Stock Exchange after the decree of permanent injunction was passed in his
favour. Since the auction took place much prior to the passing of the decree and the
appellant has failed to produce any document showing that he is a member of any
exchange, the whole time member of the Board was justified in cancelling his certificate
of registration as he ceased to comply with the mandatory conditions prescribed in
Regulation 6A of the Regulations. In this view of the matter, we find no merit in the
appeal and the same stands dismissed with no order as to costs.

Sd/-
Justice N.K.Sodhi
Presiding Officer

                Sd/- 
                            S.S.N. Moorthy 
                      Member 

7.2.2011
Prepared and compared by
RHN

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