sebi:WTM/AB/MIRSD/DOP/29775/2023-24
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Provisions invoked
- s. 19
- s. 11(4)
- s. 11B
- s. 12
- s. 27
- s. 154
- s. 29A
Regulations
- Reg. 6
- Reg. 28(2)
- Reg. 9
- Reg. 28
- Reg. 27
- Reg. 5(e)
- Reg. 27(3)
Parties
- Pune E Commodities Broking Pvt. Ltd.
Holding
The order holds that the paired contracts on NSEL were not genuine spot contracts in commodities and that the Noticee facilitated client access to them without proper and effective due diligence, which bears on its fit and proper person status as a continuing obligation.
Full text
__________________________________________________________________________________________ Order in respect of Pune E Commodities Broking Pvt. Ltd. in the matter of National Spot Exchange Ltd. Page 2 of 24 calling upon it to show cause as to why the action of cancellation of Certificate 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 Pune E Commodities Broking Pvt. 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 Pune E Commodities Broking Pvt. Ltd. in the matter of National Spot Exchange Ltd. Page 4 of 24 f. 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. g. Noticee submitted that 11 chargesheets were filed by the EOW in the subject matter and the Noticees name does not figure in the said chargesheets. Therefore, it was argued that impliedly the subject matter of the investigation is completed without making any allegations against the Noticee. 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/29775/2023-24. 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.