sebi:QJA/GG/MIRSD/DOP/25356/2022-23
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Facts / Headnote
Certificate of Registration bearing no. INZ000021330 of Vijeta Multi Commodities Private Limited cancelled with immediate effect, with directions to inform clients, allow withdrawal/transfer and square off open positions
Provisions invoked
- s. 19
- s. 11(4)
- s. 11B
- s. 28A
- s. 27
- s. 12(3)
- s. 154
Regulations
- Reg. 6
- Reg. 5
- Reg. 9
- Reg. 7
- Reg. 27
- Reg. 28(1)
- Reg. 5(e)
- Reg. 9(b)
Parties
- Vijeta Multi Commodities Private Limited
Holding
The Noticee was held not to be a 'fit and proper person' under Regulation 5(e) of the Broker Regulations read with Schedule II of the Intermediaries Regulations and its certificate of registration No. INZ000021330 as a stock broker was cancelled.
Full text
Order in respect of Vijeta Multi Commodities Pvt. Ltd. Page 2 of 20 Regulation 5(e), 9(b) and 9(f) of the SEBI (Stock Brokers) Regulations, 1992 (hereinafter referred to as the “Broker Regulations”) read with Schedule II of the Intermediaries Regulations.
Order in respect of Vijeta Multi Commodities Pvt. Ltd. Page 3 of 20 5. The aforesaid notification was amended on February 6, 2012 by DCA vide Gazette Notification No. S.O. 228(E) specifying “Forwards Market Commission, Mumbai” as the designated agency of the Central Government.
Order in respect of Vijeta Multi Commodities Pvt. Ltd. Page 4 of 20 backed by the ownership of goods were in violation of the condition of “no short sale by the members of the Exchange shall be allowed". b. Contracts in which settlement period goes beyond 11 days: In view of the definition of forward contract under FCRA, FMC was of the view that all the contracts traded on NSEL which provide settlement schedule for a period exceeding 11 days are Non-Transferable Specific Delivery contracts. Thus even if the gazette notification does not specify the delivery period, NSEL had to settle the delivery for all open position within a period of 11 days as NSEL was allowed to only trade in one- day forward contracts and was obliged to ensure delivery and settlement within 11 days.
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Source: SecMarx — sebi:QJA/GG/MIRSD/DOP/25356/2022-23. 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.