sebi:QJA/AA/MIRSD/DOP/25044/2022-23
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Facts / Headnote
Certificate of Registration (INZ000091137) of Jhaveri Credit and Capital Limited cancelled with immediate effect
Provisions invoked
- s. 19
- s. 11(4)
- s. 11B
- s. 27
- s. 12(3)
- s. 154
Regulations
- Reg. 6
- Reg. 27
- Reg. 5
- Reg. 9
- Reg. 7
- Reg. 9(b)
- Reg. 28
- Reg. 28(1)
- Reg. 25(1)
- Reg. 5(e)
Parties
- Jhaveri Credit and Capital Ltd
Holding
The Noticee, Jhaveri Credit and Capital Ltd, does not satisfy the 'fit and proper person' criteria under Schedule II of the Intermediaries Regulations, and its Certificate of Registration as a broker is cancelled under Section 12(3) and Section 19 of the SEBI Act read with Regulation 27 of the Intermediaries Regulations.
Full text
___________________________________________________________________________ Page 2 of 27 Order in respect of Jhaveri Credit and Capital Ltd in the matter of trading on the National Spot Exchange Limited
___________________________________________________________________________ Page 3 of 27 Order in respect of Jhaveri Credit and Capital Ltd in the matter of trading on the National Spot Exchange Limited 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 27 Order in respect of Jhaveri Credit and Capital Ltd in the matter of trading on the National Spot Exchange Limited the Intermediaries Regulations (as applicable at that time) read with Section 12(3) of the SEBI Act for the alleged violation of the provisions of Regulation 9(b) and 9(f) read with Clauses A(1), A(2) and A(5) of the Schedule II of the Stock Broker Regulations and being not a ‘fit and proper person’ for holding the certificate of registration as trading / clearing member in terms of Regulation 5(e) read with Regulation 27(iv) of the Broker Regulations read with Schedule II of the Intermediaries Regulations.
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Source: SecMarx — sebi:QJA/AA/MIRSD/DOP/25044/2022-23. 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.