sebi:WTM/MPB/CDMRD/120/2018
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Facts / Headnote
Exit allowed - recognition withdrawn
Provisions invoked
- s. 19
- s. 11(1)
- s. 11(2)
Parties
- The Rajkot Commodity Exchange Limited
Holding
SEBI allowed the exit of the Rajkot Commodity Exchange Limited, Rajkot, as a stock exchange and withdrew the recognition granted to it, directing it to comply with tax obligations, undertakings, Exit Circular conditions and not to use the expression Exchange in its name.
Full text
Exit Order in respect of The Rajkot Commodity Exchange Limited Page 2 of 5 exit policy for all commodity derivatives exchanges. In terms of paragraph 4 of the Exit Circular, 2016, if there is no trading operation on the platform of any commodity derivatives exchanges for more than twelve months, then such exchange shall be liable to exit. Additionally, in terms of paragraph 5 of the Exit circular, all Regional Commodity Exchanges shall have to ensure that they have at least 5% of the nation-wide market share of the commodity, which is principally traded on their platform. In case any Regional Commodity Exchange fails to meet both the above two criteria for two consecutive years, it shall be liable to exit.
Exit Order in respect of The Rajkot Commodity Exchange Limited Page 3 of 5 (iii) Payment of following dues to SEBI by the concerned exchange :- Dues outstanding to SEBI and the annual regulatory fee; The outstanding registration fees of brokers/trading members of such de- recognised exchanges as specified in the SEBI (Stock Brokers and Sub Brokers) Regulations, 1992, till the date of such de-recognition; In case of any shortfall in collection of dues of the brokers to SEBI, the exchange will make good the shortfall; (iv) Refund of deposit (refundable) to the stock brokers including their initial contribution/deposit to Settlement Guarantee Fund/Trade Guarantee Fund.
Exit Order in respect of The Rajkot Commodity Exchange Limited Page 4 of 5 (b) With respect to condition mentioned in para 6(c) (ii) above, RCX did not have the Investor Protection Fund or any such fund.
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Source: SecMarx — sebi:WTM/MPB/CDMRD/120/2018. 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.