sebi:SEBI/WTM/SR/CDMRD/68/2016

SEBI · SEBI · 2016-02-12 · S. Raman, Whole Time Member

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Exit allowed with withdrawal of recognition

Provisions invoked

• s. 19

Parties

• Cotton Association of India

Holding

The exit of Cotton Association of India as a stock exchange was allowed and the recognition granted to CAI was withdrawn, subject to directions on tax compliance, undertakings, Exit Circular conditions and non-use of the expression Exchange.

Full text

Exit Order in respect of Cotton Association of IndiaPage2 of 5 2016, in case of no trading operation on the platform of any commodity derivatives exchange for more than twelve months, such exchange shall be liable to exit. Additionally, in terms of clause 5 of the Exit Circular, 2016, all Regional Commodity Exchanges shall ensure that they have at least 5% of the nation-wide market share of the commodity, which is principally traded on their platform. In case any Regional Commodity Exchange fails to meet the above criteria for two consecutive years, it shall be liable to exit.

Exit Order in respect of Cotton Association of IndiaPage3 of 5 to as the 'IPEF'); (iii) Payment offollowing dues to SEBI by the concerned exchange:-  Dues outstanding to SEBI and the annual regulatory fee;  The outstanding registration fees of brokers/trading members of such de- recognised exchanges as specified in the SEBI (Stock Brokers and Sub Brokers) Regulations, 1992, till the date of such de-recognition;  In case of any shortfall in collection of dues of the brokers to SEBI, the Exchange to make good the shortfall;

Exit Order in respect of Cotton Association of IndiaPage4 of 5 liabilities of the CAI was restricted to Futures Trading Division only as the principles of valuation of a going concern cannot be applied for valuing the business of the Futures Trading Division, since CAI has discontinued its futures trading business activities from 2006.

Source: SecMarx — sebi:SEBI/WTM/SR/CDMRD/68/2016. 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.