sebi:QJA/MK/MIRSD/DOP/28904/2023-24
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Provisions invoked
- s. 19
- s. 11(4)
- s. 11B
- s. 27
- s. 12(3)
- s. 154
- s. 29A
- s. 131B
- s. 14A
- s. 131
Regulations
- Reg. 9(f)
- Reg. 27
- Reg. 7
- Reg. 9(b)
- Reg. 28
- Reg. 25
- Reg. 25(1)
- Reg. 5(e)
Parties
- Rikhav Commodity Brokers Private Limited
Holding
The order addresses SEBI's proceedings against Rikhav Commodity Brokers Private Limited for alleged failure to satisfy the 'fit and proper person' criteria under Regulation 5(e) of the Stock Brokers Regulations read with Schedule II of the Intermediaries Regulations, in connection with trading in paired contracts on NSEL. The final disposition and penalty are not stated in the extracted text.
Full text
Order in respect of Rikhav Commodity Brokers Private Limited Page 2 of 32 Noticee to submit its reply, if any, within 21 days of receipt of the said SCN. The Noticee filed its reply vide letter dated January 22, 2021.
Order in respect of Rikhav Commodity Brokers Private Limited Page 3 of 32 dated December 07, 2022, December 12, 2022, March 03, 2023 and July 18, 2023 furnished its reply.
Order in respect of Rikhav Commodity Brokers Private Limited Page 4 of 32 k. That except member/ broker relationship with NSEL, the Noticee has no other connection or association with NSEL, its directors, promoters and key management persons in any manner whatsoever. l. That no clients were permitted to execute trades directly on the NSEL and had to do so only through a registered broker, hence the same cannot amount to an “association” between the Noticee and the NSEL. m. That Noticee had no role to play in NSEL deciding to launch the alleged paired contracts. n. That as per the bye-laws of the NSEL, all contracts launched by NSEL were with the prior concurrence of the FMC. o. On August 05, 2011, FMC was appointed as the designated agency for NSEL and it was expected to play a proactive role by monitoring trades at NSEL platform and its statutory compliance requirements in terms of Government of India notification dated June 05, 2007 and that there was gross failure of FMC in performing their duties as an apex regulator of commodities market and their presence as mere silent spectator is root cause of subject matter of present proceedings. p. That except earning meagre brokerage on execution of trades for the client, Noticee have not derived any gains or benefits of any nature whatsoever. q. That while granting registration to the Noticee, SEBI was fully aware that Noticee had carried out trades in the alleged paired contracts and therefore the principles of res judicata and
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Source: SecMarx — sebi:QJA/MK/MIRSD/DOP/28904/2023-24. 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.