sebi:QJA/SP/MIRSD/MIRSD_DPIEA/23167/2022-23
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Facts / Headnote
Cancellation of certificate of registration as Stock Broker with Registration no. INZ000042538
Provisions invoked
- s. 19
- s. 12(3)
Regulations
- Reg. 27
- Reg. 5
- Reg. 23
- Reg. 24
- Reg. 25
- Reg. 26
- Reg. 27(1)
- Reg. 32(2)
- Reg. 27(i)
- Reg. 5(a)
Parties
- Kaynet Commodities Private Limited
Holding
The certificate of registration of Kaynet Commodities Private Limited as Stock Broker with Registration no. INZ000042538 is cancelled because it ceased to be a member of MCX with effect from November 09, 2020 and was not re-admitted for more than six months.
Full text
Order in the Matter of Kaynet Commodities Private Limited Page 2 of 8 the Noticee. Pursuant to completion of the said inspection, one of the action recommended with respect to the Noticee was to conduct Enquiry in view of MCX declaring the Noticee defaulter on November 09, 2020.
Order in the Matter of Kaynet Commodities Private Limited Page 3 of 8 consequential actions. Cancellation of membership by MCX does not absolve the Noticee from the actions that can be taken by SEBI under Intermediaries Regulations. Accordingly, the contention of the Noticee that by virtue of MCX terminating its membership, the Noticee is out of regulatory purview of SEBI is not acceptable. c. It is a matter of record and admitted by the Noticee that the Membership of the Noticee has been terminated by MCX with effect from November 09, 2020. It is matter of record that it has been more than 2 years since the Noticee’s Membership with MCX has been terminated. Furthermore, during the personal hearing the Noticee conceded that its Registration is liable to be cancelled. In this regard attention is drawn to Regulation 27 (i) and (ii) of Stock Brokers Regulations which reads as under “Liability for action under the Securities and Exchange Board of India (Intermediaries) Regulations, 2008
Order in the Matter of Kaynet Commodities Private Limited Page 4 of 8 5. The SCN has been issued to the Noticee under Regulation 27(1) of the Intermediaries Regulations, in respect of enquiry conducted against the Noticee. The SCN was served upon the Noticee through speed post acknowledgement due and through email dated September 29, 2022. Noticee filed an undated reply to the SCN vide email dated November 15, 2022. The Noticee was granted an opportunity of personal hearing on December 20 2022. However, the Noticee vide email dated November 30, 2022 sought an adjournment and accordingly, another opportunity of personal hearing was granted to the Noticee on January 05, 2023. Mr. Sanjay Shah, Director and Designated Authority of the Noticee, appearing on behalf of the Noticee was heard on the scheduled day via videoconferencing and submitted that he will file written submissions within two days’ time. I note that till date, no written submissions have been filed by the Noticee.
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Source: SecMarx — sebi:QJA/SP/MIRSD/MIRSD_DPIEA/23167/2022-23. 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.