sebi:QJA/AB/MIRSD/DOP/27951/2023-24
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Facts / Headnote
Proceedings against Prudent Comder Private Limited disposed of without issuing any directions.
Provisions invoked
- s. 19
Regulations
- Reg. 27
- Reg. 28(1)
- Reg. 5(e)
Parties
- Prudent Comder Private Limited
Holding
The proceedings against Prudent Comder Private Limited were disposed of without directions because Prudent Comder ceased to exist upon amalgamation with Prudent Broking Services Private Limited, and the 'fit and proper' status of a transferor company does not pass on to the resultant entity.
Full text
Order in respect of Prudent Comder Private Limited in the matter of NSEL Page 2 of 7 3. As the noticee was a member of NSEL and had participated in / facilitated trading in paired contract(s) on the NSEL platform, SEBI initiated proceedings against the noticee under Chapter V of the Intermediaries Regulations and appointed a Designated Authority (hereinafter referred to as the “DA”) on September 21, 2018, to enquire into whether the noticee was ‘fit and proper’ to continue to hold the certificate of registration as a commodity derivatives broker, in view of the alleged violation of regulations 5(e), 9(b), 9(f) read with Clauses A(1), A(2) and A(5) of the Schedule II of the Brokers Regulations read with Schedule II of the Intermediaries Regulations. The DA issued a show cause notice dated September 25, 2018 to Prudent Comder. Pursuant thereto, Prudent Broking Services Private Limited (hereinafter referred to as the “Prudent Broking”), vide letter dated October 15, 2018, inter alia, submitted that the noticee, i.e., Prudent Comder had amalgamated with Prudent Broking with effect from May 3, 2018.
Order in respect of Prudent Comder Private Limited in the matter of NSEL Page 3 of 7 Authority, should not be taken against Prudent Comder. A copy of the Enquiry Report was also forwarded to Prudent Comder. Pursuant to the same, Prudent Broking filed a reply on merits in the matter, on behalf of Prudent Comder.
Order in respect of Prudent Comder Private Limited in the matter of NSEL Page 4 of 7 time till December 16, 2022 to file post hearing submissions in the matter. Vide letter date December 16, 2022, Prudent Broking filed post hearing submissions in the matter. Further, vide letter dated April 18, 2023, Prudent Broking filed additional reply in the matter and submitted that on account of amalgamation of Prudent Comder with Prudent Broking, the instant proceedings are liable to be disposed of/ dropped.
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Source: SecMarx — sebi:QJA/AB/MIRSD/DOP/27951/2023-24. 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.