sebi:WTM/GM/MIRSD/DOP/13470/2021-22
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Facts / Headnote
Cancellation of certificate of registration
Provisions invoked
- s. 19
- s. 12
- s. 27
- s. 21
Regulations
- Reg. 9(f)
- Reg. 27
- Reg. 5
- Reg. 28
- Reg. 6
- Reg. 5(e)
- Reg. 2(1)(k)
Parties
- Pragya Commodity Brokers Private Limited
Holding
SEBI cancelled the certificate of registration granted to Pragya Commodity Brokers Private Limited (INZ000030635) holding it not fit and proper to continue as a stock broker.
Full text
_______________________________________________________________________________________ Order in the matter of Pragya Commodity Brokers Private Limited 1 WTM/GM/MIRSD/DOP/13470/2021-22 SECURITIES AND EXCHANGE BOARD OF INDIA
_______________________________________________________________________________________ Order in the matter of Pragya Commodity Brokers Private Limited 2 Central Government or its designated agency. Thereafter, NSEL commenced operations in October 2008.
_______________________________________________________________________________________ Order in the matter of Pragya Commodity Brokers Private Limited 3 a. Short Sale NSEL had not made it mandatory for the seller to deposit goods in its warehouse before taking a sell position. Hence, the condition of “no short sale by members of the NSEL shall be allowed” was not being met by the NSEL. b. Contracts with Settlement Period going beyond 11 days Some of the contracts offered for trade on NSEL had settlement periods exceeding 11 days and such contracts were “non-transferable specific delivery” contracts under the FCRA. As per the FCRA, the “ready delivery contracts” were required to be settled within 11 days of the trade and hence, the contracts traded on the NSEL which provided a settlement schedule for a period exceeding 11 days were not allowed under the aforesaid notification.
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Source: SecMarx — sebi:WTM/GM/MIRSD/DOP/13470/2021-22. 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.