sebi:WTM/GM/MIRSD/DOP/13722/2021-22
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Facts / Headnote
Certificate of registration granted to Paterson Commodities P. Ltd. cancelled; Noticee directed to inform clients, allow withdrawal/transfer of securities and funds within 60 days, and transfer remaining funds/securities to another registered stock broker within 30 days thereafter.
Provisions invoked
- s. 19
- s. 12
- s. 27
- s. 21
Regulations
- Reg. 9(f)
- Reg. 27
- Reg. 5
- Reg. 28(1)
- Reg. 6
- Reg. 5(e)
Parties
- Paterson Commodities Private Limited (INZ000075933)
Holding
The Noticee, Paterson Commodities P. Ltd., is not a 'fit and proper person' under Schedule II of the Intermediaries Regulations read with Regulation 5(e) and 9(f) of the Stock Broker Regulations, and its certificate of registration as a stock broker is cancelled.
Full text
Order in the matter of Paterson Commodities P. Ltd. Page 1 of 17 WTM/GM/MIRSD/DOP/13722/2021-22 SECURITIES AND EXCHANGE BOARD OF INDIA
Order in the matter of Paterson Commodities P. Ltd. Page 2 of 17 Central Government or its designated agency. Thereafter, NSEL commenced operations in October 2008.
Order in the matter of Paterson Commodities P. Ltd. Page 3 of 17 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 NSEL shall be allowed” was not being met by NSEL. b. Contracts with Settlement Period going beyond 11 (eleven) 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/13722/2021-22. 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.