sebi:QJA/SVMDR/MIRSD/DOP/29838/2023-24
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Facts / Headnote
Held not fit and proper; registration as commodities derivatives broker cancelled with consequential client-transfer directions
Provisions invoked
- s. 19
- s. 11(4)
- s. 11B
- s. 27
- s. 12(3)
- s. 29A
- s. 154
- 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. 5(e)
Parties
- Ganesh Commodities Private Limited
Holding
The Noticee, Ganesh Commodities Private Limited, is not a fit and proper person to continue as a commodities derivatives broker and its certificate of registration is cancelled in the interest of the securities market.
Full text
___________________________________________________________________________ Page 2 of 44 Order in respect of Ganesh Commodities Private Limited in the matter of National Spot Exchange Limited 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”.
___________________________________________________________________________ Page 3 of 44 Order in respect of Ganesh Commodities Private Limited in the matter of National Spot Exchange Limited a. Short Sale NSEL had not made it mandatory for the seller to deposit goods in its warehouse before taking a sell position. Hence, the condition of “no short sale by members of the NSEL shall be allowed” was not being met by the NSEL and its trading/clearing members who traded in the paired contracts during the relevant period.
___________________________________________________________________________ Page 4 of 44 Order in respect of Ganesh Commodities Private Limited in the matter of National Spot Exchange Limited 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/DOP/29838/2023-24. 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.