RAJENDRA PRASAD BAGARIA Vs. BHUBANESWAR STOCK EXCHANGE

JUDGEMENT

(1.) A registered stock broker, as the petitioner is, challenges the order of suspension passed by opposite party No. 1, Bhubaneswar Stock Exchange Association Ltd., and the proceedings initiated by the said stock exchange for its expulsion.

(2.) PRECISELY , the petitioner has prayed for the following reliefs : '. . . to issue a rule nisi in the nature of a writ of mandamus and/or writ of certiorari and/or any other appropriate writ/writs, order/orders, calling upon the opposite parties to show cause as to why articles 158, 159 and 167 of the articles of association of opposite party No. 1 stock exchange association and bye -laws 315, 347 and 348 framed by the said opposite party No. 1 should not be declared ultra vires the Act 15 of 1992 and as to why the orders of suspension and expulsion (annexures 1/1 and 1/3) and the auction of the membership of the petitioner in favour of opposite party No. 4 should not he quashed and (ii) if the opposite parties fail to show cause and/or show insufficient and/or false cause, to make the said rule nisi absolute and (iii) to issue any other relief/reliefs to which the petitioner is entitled and (iv) allow the writ application with costs .....'

(3.) IT is also placed on record that the Central Government by notification established and incorporated the Securities and Exchange Board which came into force on April 4, 1992. Section 12 of the said Act provides for registration of stock brokers, sub -brokers, etc. Sections 29 and 30 of he Act provide for the Central Government and the Board to frame rules and regulations respectively, The Central Government framed rules under Section 29 and Rule 3 provides that no stock broker or sub -broker shall buy, sell, deal in securities unless he holds a certificate granted by the Board under the regulations.