sebi:QJA/AA/MIRSD/DOP/25283/2022-23
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Facts / Headnote
Certificate of Registration (INZ000045230) of JM Financial Commtrade Ltd. cancelled with immediate effect
Provisions invoked
- s. 19
- s. 11(4)
- s. 11B
- s. 28A
- s. 27
- s. 12(3)
- s. 154
- s. 6(1)
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)
Parties
- JM Financial Commtrade Ltd.
Holding
The Noticee, JM Financial Commtrade Ltd., is not a 'fit and proper person' and its Certificate of Registration as a Stock Broker is cancelled under Regulation 27 of the Intermediaries Regulations read with Sections 12(3) and 19 of the SEBI Act.
Full text
___________________________________________________________________________ Page 2 of 43 Order in respect of JM Financial Commtrade Ltd. in the matter of trading on the National Spot Exchange Limited shall be allowed; that all outstanding positions of the trade at the end of the day shall 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 43 Order in respect of JM Financial Commtrade 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 43 Order in respect of JM Financial Commtrade 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/25283/2022-23. 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.