sebi:WTM/AN/MIRSD/DOP/29766/2023-24
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Noticee held not satisfying 'fit and proper person' criteria under Schedule II to the Intermediaries Regulations
Provisions invoked
- s. 19
- s. 11(4)
- s. 11B
- s. 27
- s. 12(3)
- s. 29A
- s. 154
- s. 29A(2)
- s. 209A
Regulations
- Reg. 6
- Reg. 9(f)
- Reg. 9(b)
- Reg. 27
- Reg. 25(1)
- Reg. 5(e)
Parties
- Hem Multi Commodities Pvt. Ltd.
Holding
The Noticee, Hem Multi Commodities Pvt. Ltd., does not satisfy the 'fit and proper person' criteria specified in Schedule II to the Intermediaries Regulations because the FIR dated September 28, 2018 registered inter alia against the Noticee remains pending and subsisting and has not been quashed or stayed.
Full text
Order in respect of Hem Multi Commodities Pvt. Ltd. in the matter of NSEL Page 2 of 43 3. Pursuant to the DA Report, a post enquiry show cause notice dated January 03, 2020 (“SCN”) was issued to the Noticee, alongwith copies of (i) the aforesaid DA Report; (ii) Finance Ministry letter dated December 30, 2014 to Forwards Market Commission (“FMC”); (iii) Hon’ble Bombay HC’s order in criminal bail application no. 1263 of 2014 in Jignesh Prakash Shah vs. State of Maharashtra dated August 22, 2014.
Order in respect of Hem Multi Commodities Pvt. Ltd. in the matter of NSEL Page 3 of 43 (i) Copy of SEBI complaint dated September 24, 2018 filed with Economic Offences Wing (“EoW”); (ii) Copy of FIR dated September 28, 2018 filed by SEBI under section 154 of Criminal Procedure Code, 1973 (“CrPC”); and (iii) Amended Schedule II of Intermediaries Regulations.
Order in respect of Hem Multi Commodities Pvt. Ltd. in the matter of NSEL Page 4 of 43 Further, Ministry of Finance, Department of Economic Affairs, Government of India, vide its letter dated November 20, 2015 to SEBI had clearly advised: "SEBI is not expected to deal with the matters which were not dealt with by erstwhile FMC. Further, it clarified that since spot market /ready delivery contracts were not regulated by the FMC, SEBI is not expected to take upon itself any regulatory function with regard to such markets" SEBI cannot have jurisdiction over the commodity spot/ready delivery contracts market just because it got merged with FMC.
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:WTM/AN/MIRSD/DOP/29766/2023-24. 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.