sebi:QJA/AA/MIRSD/DOP/24995/2022-23
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Noticee held not a 'fit and proper person'; recommendation to cancel registration No. INZ000050236 as commodity derivatives broker; directions for client withdrawal/transfer and squaring off positions
Provisions invoked
- s. 19
- s. 11(4)
- s. 11B
- s. 15J
- s. 27
- s. 12(3)
- s. 154
Regulations
- Reg. 6
- Reg. 27
- Reg. 9
- Reg. 7
- Reg. 9(b)
- Reg. 28
- Reg. 28(1)
- Reg. 25(1)
- Reg. 5(e)
Parties
- Time Leverage Instruments Pvt. Ltd.
Holding
The Noticee, Time Leverage Instruments Pvt. Ltd., does not satisfy the 'fit and proper person' criteria under Schedule II of the Intermediaries Regulations, and its registration as a commodity derivatives broker is recommended for cancellation under Regulation 27 of the Intermediaries Regulations.
Full text
___________________________________________________________________________ Page 2 of 37 Order in respect of Time Leverage Instruments Pvt. Ltd. in the matter of trading on the National Spot Exchange Limited in exercise of powers conferred by the Section 27 of FCRA subject to certain conditions.
___________________________________________________________________________ Page 3 of 37 Order in respect of Time Leverage Instruments 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 37 Order in respect of Time Leverage Instruments Pvt. Ltd. in the matter of trading on the National Spot Exchange Limited ENQUIRY BY DESIGNATED AUTHORITY
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:QJA/AA/MIRSD/DOP/24995/2022-23. 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.