sebi:WTM/AB/MIRSD/DOP/29774/2023-24
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Facts / Headnote
Suspension of Certificate of Registration of Arihant Futures and Commodities Ltd as a commodities derivatives broker for a period of six months from the date of the Order or till discharge or acquittal in relation to the chargesheet filed by EOW, whichever is later
Provisions invoked
- s. 19
- s. 11(4)
- s. 11B
- s. 12
- s. 27
- s. 21
- s. 154
- s. 29A
Regulations
- Reg. 6
- Reg. 28(2)
- Reg. 9
- Reg. 28
- Reg. 27
- Reg. 5(e)
- Reg. 27(3)
Parties
- Arihant Futures and Commodities Ltd
Holding
The Noticee attracts disqualification under paragraph 3(b) of Schedule II of the Intermediaries Regulations and is not a fit and proper person; its Certificate of Registration as a commodities derivatives broker is suspended for six months or till discharge or acquittal in the EOW chargesheet, whichever is later.
Full text
__________________________________________________________________________________________ Order in respect of Arihant Futures and Commodities Ltd in the matter of National Spot Exchange Ltd. Page 2 of 24 of Registration as recommended by the DA or any other action, as deemed fit by the Competent Authority, under Regulation 28(2) of the Intermediaries Regulations (as applicable at the relevant time) should not be taken against it. The SCN further required the Noticee to submit its reply, if any, within 21 days of receipt of the same. The SCN was duly served upon the Noticee.
__________________________________________________________________________________________ Order in respect of Arihant Futures and Commodities Ltd in the matter of National Spot Exchange Ltd. Page 3 of 24 advised it to submit its reply/ comments/ clarifications, if any, within 15 days of receipt of the SSCN.
__________________________________________________________________________________________ Order in respect of Arihant Futures and Commodities Ltd in the matter of National Spot Exchange Ltd. Page 4 of 24 f. It was submitted that the Noticee had executed contracts on behalf of the clients under their instructions and authorizations. Noticee also submitted that six clients had voluntarily given affidavits stating that they themselves had approached the Noticee for trading on the NSEL platform. g. The amendments made to the ‘fit and proper person’ criteria in 2021 is prospective in nature and cannot apply in the present matter. It was also submitted that a Writ Petition has been filed before the Hon’ble Bombay High Court in the matter of Venkataraman Rajamani v. SEBI1 challenging the legality of the amendments carried out to the Intermediaries Regulations in 2021. h. The doctrine of proportionality and Wednesbury rules required that relevant and material facts were required to be considered for a
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Source: SecMarx — sebi:WTM/AB/MIRSD/DOP/29774/2023-24. 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.