sebi:WTM/ASB/MIRSD/DOP/29873/2023-24
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Facts / Headnote
Noticee prohibited from taking up any new clients qua its activities as a stock broker in the commodity segment for a period of three months from the date of the Order or till the FIR filed against the Noticee by EOW ceases to be pending or the Noticee is discharged or acquitted by a Court in relation to the FIR, whichever is later.
Provisions invoked
- s. 19
- s. 11(4)
- s. 11B
- s. 12
- s. 27
- s. 154
- s. 29A
- s. 131B
- s. 131
Regulations
- Reg. 6
- Reg. 9
- Reg. 28
- Reg. 27
- Reg. 5(e)
Parties
- Globe Commodities Limited
Holding
The Noticee, Globe Commodities Limited, failed to comply with the 'fit and proper person' criteria specified in Schedule II of the Intermediaries Regulations on a continuous basis, and is prohibited from taking up any new clients qua its activities as a stock broker in the commodity segment for three months or until the FIR ceases to be pending, whichever is later.
Full text
______________________________________________________________________________________ Order in respect of Globe Commodities Limited in the matter of National Spot Exchange Ltd. 2 / 23 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 Globe Commodities Limited in the matter of National Spot Exchange Ltd. 3 / 23 personal hearing was scheduled on October 9, 2023, during which Shri Gautam Gupta appeared on behalf of the Noticee and sought adjournment. Subsequently, in compliance with the principles of natural justice, another personal hearing was scheduled on October 26, 2023, for which notice of hearing was duly served upon the Noticee. On the aforementioned hearing date, Shri Prakash Shah (Authorised Representative) appeared on behalf of the Noticee and argued in line with the aforementioned replies filed with SEBI. I also note that the Noticee submitted its post hearing submissions vide letter dated November 24, 2023.
______________________________________________________________________________________ Order in respect of Globe Commodities Limited in the matter of National Spot Exchange Ltd. 4 / 23 h) Before executing trades on NSEL, the Noticee had sought details about settlement guarantee for the trades executed on NSEL platform, in response to which NSEL vide letter dated 15.06.2010 informed the Noticee that NSEL provides counter party guarantee in respect of all trades executed on the NSEL’s platform. i) Noticee had stopped executing any trades on NSEL before NSEL suspended trading on its platform. j) There is no obligation of pay-in / payout remaining / pending to / from NSEL in respect of trades executed by the Noticee on NSEL platform. k) No payment to be received from NSEL and no payment was due to any of the client of the Noticee who had traded on the platform of NSEL. This fact can further be confirmed from the Enquiry Report of DA, which specifically mentions that the name of the Noticee is not appearing in any of the relied upon reports. l) Noticee has placed reliance on the SEBI Order dated 20.10.2023 passed in the matter of Kedia Capital Services Private Limited in the matter of NSEL.
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Source: SecMarx — sebi:WTM/ASB/MIRSD/DOP/29873/2023-24. 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.