sebi:QJA/SVMDR/MIRSD/29220/2023-24
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Facts / Headnote
Registration as trading member/stock broker refused; Noticee debarred from making a fresh application for registration for 3 months from date of order or till acquittal in the FIR, whichever is earlier; Noticee directed to inform existing clients and allow withdrawal/transfer of securities and funds within 15 days (and transfer to another registered broker within next 15 days if not withdrawn).
Provisions invoked
- s. 19
- s. 11(4)
- s. 11B
- s. 27
- s. 12(3)
- s. 154
- s. 131
- s. 29A(2)
Regulations
- Reg. 6
- Reg. 27
- Reg. 9
- Reg. 7
- Reg. 9(b)
- Reg. 28
- Reg. 25
- Reg. 26
- Reg. 28(1)
- Reg. 25(1)
- Reg. 5(e)
Parties
- Matalia Commodity
Holding
The Noticee, Matalia Commodity, does not satisfy the 'fit and proper person' criteria under Schedule II of the SEBI (Intermediaries) Regulations, 2008, and therefore its application for registration as a stock broker/trading member is refused; it is debarred from making a fresh application for 3 months or till acquittal in the pending FIR, whichever is earlier.
Full text
________________________________________________________________________ _ Order in respect of Matalia Commodity in the matter of trading on the National Spot Exchange Limited Page 2 of 34 Contracts (Regulation) Act, 1952 (hereinafter be referred to as, “FCRA”) by the Department of Consumer Affairs of the Ministry of Consumer Affairs, Food and Public Distribution, Government of India, vide Gazette Notification No. SO 906(E) dated June 05, 2007 (hereinafter referred to as “2007 Exemption Notification”), in exercise of powers conferred under Section 27 of FCRA subject to certain conditions which, inter alia, included “no short sale by members of the exchange shall be allowed; that all outstanding positions of the trade at the end of the day shall result in delivery and that all information or returns relating to the trade as and when asked for shall be provided to the Central Government or its designated agency”.
________________________________________________________________________ _ Order in respect of Matalia Commodity in the matter of trading on the National Spot Exchange Limited Page 3 of 34
________________________________________________________________________ _ Order in respect of Matalia Commodity in the matter of trading on the National Spot Exchange Limited Page 4 of 34 a certificate of registration as Trading and Clearing Member in terms of Regulation 5(e) of the Stock Broker Regulations read with Regulation 27(iv) of the Stock Broker Regulations read with Schedule II of the Intermediaries Regulations.
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Source: SecMarx — sebi:QJA/SVMDR/MIRSD/29220/2023-24. 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.