The regulator has also suspended the certificate of registration of two brokers of the Ahmedabad and Hyderabad Stock Exchanges for one year and six months respectively, Sebi said in a statement.
Sebi said Dinesh Sharma, Ram Babu Sharma, Rajesh Gupta, Lalit Jhanwar, Onkar Mai Shah, Mohammed Yakil, Dhanesh Baid and Sudhir Sarda of Jaipur Stock Exchange and Mr Singh of Magadh Stock Exchange were declared defaulters by the exchange and ceased to be members, thereby failing to fufill the pre-requisite condition of registration as brokers with the market regulator.
Their registrations have been cancelled in terms of sub-regulation (3) of Regulation 29 of Sebi (stock brokers and sub-brokers) Rules and Regulations (1992).
The penalty on Merry Sharefin Ltd of Ahmedabad Stock Exchange has been imposed due to irregularities in issuance of contract notes, dealing with unregistered brokers and not maintaining strict segregation between clients funds and own funds. He is not entitled to carry on business with effect from December 27 for a one year period, Sebi release said.
For similar reasons, Sebi suspended Govind Kishore Rathi of Hyderabad Stock Exchange with effect January six, 2003 for a six-month period.