July 07, 2004
PR No. 145/2004

SECURITIES AND EXCHANGE BOARD OF INDIA

Certificate of Registration granted to M/s Integrated Enterprises (India) Ltd. as a Depository Participant of National Securities Depository Limited, suspended

Chairman, SEBI vide his order dated July 02, 2004 has suspended the certificate of registration granted to M/s Integrated Enterprises (India) Ltd. (IEL), a depository participant of National Securities Depository Ltd, for a period of six months. Further, in order to protect the interests and also to ensure that alternate arrangements are made by them, the order shall come into force only after the expiry of one month from the date of the order.
 
In August 2001, SEBI had advised IEL to stop accepting fresh business and opening of new account since the aggregate value of the custody holdings of IEL had crossed the permissible limits of 100 times of its networth as stipulated under Regulation 19 (a) (viii) of SEBI (Depositories and Participants) Regulations, 1996. Also a time limit of three months was given to them to bring down the custody holding limits within the permissible limits. Inspection of the depository participant operations of IEL during September 2001 brought out that IEL failed to monitor and bring down the custody holding limits. On the contrary IEL had opened 561 fresh accounts, in violation of the directions issued by SEBI. 
 
Based on the inspection findings an enquiry officer was appointed. Enquiry Officer had recommended for suspension of registration granted to IEL for a period of six months. Taking into account the recommendations of the Enquiry Officer, Chairman, SEBI has suspended the registration, granted to IEL in terms of Sub-Regulation (5) of Regulation 16 of SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002, for a period of six months. 
 
 
Mumbai

July 7, 2004