sebi:QJA/AA/MIRSD/DOP/24898/2022-23
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Facts / Headnote
Noticee declared not a fit and proper person; certificate of registration INZ000054534 recommended for cancellation; directions issued for client notification and withdrawal/transfer of funds and securities
Provisions invoked
- s. 19
- s. 11(4)
- s. 11B
- s. 28A
- s. 27
- s. 23
- s. 12(3)
- s. 154
- s. 156
Regulations
- Reg. 6
- Reg. 27
- Reg. 9
- Reg. 23
- Reg. 7
- Reg. 9(b)
- Reg. 28
- Reg. 28(1)
- Reg. 25(1)
- Reg. 5(e)
- Reg. 28(2)
- Reg. 24(2)
- Reg. 200
- Reg. 25(3)
Parties
- Parwati Commodity Market Pvt. Ltd.
Holding
The Noticee, Parwati Commodity Market Pvt. Ltd., is not a fit and proper person under Regulation 5(e) of the Stock Brokers Regulations read with Regulation 27 of the Intermediaries Regulations, and its certificate of registration as a commodity derivatives broker is recommended for cancellation.
Full text
___________________________________________________________________________ Page 2 of 42 Order in respect of Parwati Commodity Market Pvt. Ltd. in the matter of trading on the National Spot Exchange Limited result in delivery and that all information or returns relating to the trade as and when asked for shall be provided to the Central Government or its designated agency.
___________________________________________________________________________ Page 3 of 42 Order in respect of Parwati Commodity Market Pvt. Ltd. in the matter of trading on the National Spot Exchange Limited a. Short Sale NSEL had not made it mandatory for the seller to deposit goods in its warehouse before taking a sell position. Hence, the condition of “no short sale by members of the NSEL shall be allowed” was not being met by the NSEL and its trading/clearing members who traded in the paired contracts during the relevant period. b. Contracts with Settlement Period going beyond 11 days Some of the contracts offered for trade on NSEL had settlement periods exceeding 11 days and therefore, such contracts were “non-transferable specific delivery” contracts under the FCRA. As per the FCRA, the “ready delivery contracts” were required to be settled within 11 days of the trade and hence, the contracts traded on the NSEL which provided settlement schedule for a period exceeding 11 days were not allowed under the aforesaid Notification.
___________________________________________________________________________ Page 4 of 42 Order in respect of Parwati Commodity Market Pvt. Ltd. in the matter of trading on the National Spot Exchange Limited ENQUIRY BY DESIGNATED AUTHORITY
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Source: SecMarx — sebi:QJA/AA/MIRSD/DOP/24898/2022-23. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.