sebi:QJA/MK/MIRSD/DOP/27991/2023-24
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Facts / Headnote
Certificate of Registration (INZ000083734) of J V Commodity Pvt. Ltd. suspended for three months from the date of the order or till the FIR ceases to be pending or the Noticee is discharged/acquitted, whichever is later
Provisions invoked
- s. 19
- s. 11(4)
- s. 11B
- s. 27
- s. 29
- s. 12(3)
- s. 154
- s. 3(2)
- s. 29A
- s. 131B
- s. 14A
- s. 131
Regulations
- Reg. 7
- Reg. 28
- Reg. 25
- Reg. 27
- Reg. 5(e)
- Reg. 25(3)
Parties
- J V Commodity Pvt. Ltd.
Holding
The Noticee, J V Commodity Pvt. Ltd., is not a 'fit and proper person' for holding a certificate of registration as a broker, and its certificate of registration is suspended for three months or until the pending FIR against it ceases to be pending, whichever is later.
Full text
Order in respect of J V Commodity Pvt. Ltd. in the matter of National Spot Exchange Limited Page 2 of 29 Noticee before the Ld. Whole Time Member of SEBI (hereinafter referred to as the “WTM”) which was availed by it. Subsequent to which, Noticee filed its reply dated January 4, 2020.
Order in respect of J V Commodity Pvt. Ltd. in the matter of National Spot Exchange Limited Page 3 of 29 hearing, certain queries were raised to the Noticee and the Noticee was granted time to submit response to the said queries along with the post hearing
Order in respect of J V Commodity Pvt. Ltd. in the matter of National Spot Exchange Limited Page 4 of 29 allegedly violates any of the conditions of the Certificate of Registration or any of the provisions of the Securities laws and the regulations framed there under; g. SEBI Regulations cannot be made applicable retrospectively; h. The amendment of the criteria for fit and proper person laid out in Schedule II of the Intermediaries Regulations came into effect from November 17, 2021 which is much after the initiation of the present proceedings. Therefore, any retrospective reliance on such an amendment that took place later in time would be in gross violation of law and principles of natural justice. i. The letter dated November 20, 2015 of the Ministry of Finance has direct bearing on the question of jurisdiction of SEBI on spot market and since the erstwhile FMC had not dealt/ initiated any action against the brokers, SEBI is not supposed to deal with the matter in question pertaining to the members of NSEL, which is also prohibited as per the said letter of the Ministry of Finance; j. Reliance placed on decisions of the Hon’ble Tribunal in the matter of Jermyn Capital vs. SEBI and Mukesh Babu Securities vs. SEBI is misplaced since both the matters were decided by Hon’ble SAT to show that close association with any person who does not enjoy a good reputation, is good enough to determine that the person in question is not fit and proper person, however, no such facts are av
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Source: SecMarx — sebi:QJA/MK/MIRSD/DOP/27991/2023-24. 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.