sebi:WTM/ASB/MIRSD/MIRSD_DPIEA/28200/2023-24
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Facts / Headnote
Cancellation of Certificate of Registration as Stock Broker in Commodity Derivative Segment bearing Registration No. INZ000033733 with immediate effect
Provisions invoked
- s. 19
- s. 12A
- s. 12(3)
Regulations
- Reg. 4
- Reg. 4(1)
- Reg. 4(2)(f)
- Reg. 4(2)
- Reg. 9
- Reg. 27
- Reg. 26(1)
- Reg. 27(1)
Parties
- Fairwealth Commodity Broking Pvt. Ltd.
Holding
The Whole Time Member cancelled the Certificate of Registration of Fairwealth Commodity Broking Pvt. Ltd. as a Stock Broker in the Commodity Derivative Segment (INZ000033733) for flagrant violations of broker circulars, PFUTP Regulations and Code of Conduct.
Full text
Order in the Enquiry Proceedings against Fairwealth Commodity Broking Pvt. Ltd. Page 2 / 25 e. non-adherence to stipulated client registration process (KYC and KRA process); and f. uploading of incorrect mobile number and email ID in UCC database.
Order in the Enquiry Proceedings against Fairwealth Commodity Broking Pvt. Ltd. Page 3 / 25 ▪ Clause 2(B) of SEBI Circular CIR/MIRSD/15/2011 dated August 02, 2011 ▪ Clauses A (1), (2), and (5) of Code of Conduct as specified in Schedule II of Regulation 9 (f) of Stock Broker Regulations, 1992 2.3. It is noted that the SCN was sent by SPAD to the address of the Noticee as provided by it to SEBI: A-312 to A-323, 3rd Floor, Somdutt Chamber-I, Bhikaji Cama Place, New Delhi - 110066. The SCN returned to SEBI undelivered. The SCN was also emailed to the email ID: compliance@fairwealth.in, however the said mail bounced back. Subsequently, a notice was published in the Hindustan Times’ Delhi edition of April 22, 2022 (English daily), notifying the Noticee of the SCN issued to it, with the intimation that an opportunity of personal hearing had been scheduled before the DA for May 13, 2022. A similar notice, containing the above-mentioned details, were also published in the Hindi dailies, Dainik Jagran (Delhi edition of April 22, 2022) and Gurgaon Mail (April 22, 2022 edition). 2.4. It is noted that the Noticee vide email dated May 05, 2022 (from gaba.dhirender@gmail.com) had requested for extension of the hearing scheduled for May 13, 2022 citing medical reasons and asked for an extension of two months. By way of email dated May 27, 2022, Noticee was informed that since considerable time had elapsed, extension request for two months could not be granted. The Noticee vide the said emai
Order in the Enquiry Proceedings against Fairwealth Commodity Broking Pvt. Ltd. Page 4 / 25 2.6. Consequently, the DA enquired into the above-mentioned violations ex-parte, and in his report dated June 24, 2022 (“Enquiry Report”), found that FCBL had contravened the provisions as enumerated at 2.2 above. 2.7. In view of the same, the DA in terms of Regulation 26(1) of the Intermediaries Regulations recommended that the Certificate of Registration of FCBL be cancelled.
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Source: SecMarx — sebi:WTM/ASB/MIRSD/MIRSD_DPIEA/28200/2023-24. 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.