sebi:WTM/MPB/CDMRD/121/2018
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Facts / Headnote
Exit allowed; recognition as a recognised commodity derivative exchange withdrawn
Provisions invoked
- s. 19
- s. 11(1)
Parties
- India Pepper and Spice Trade Association
Holding
SEBI allowed the exit of the India Pepper and Spice Trade Association as a stock exchange and consequentially withdrew the recognition granted to it as a recognised commodity derivative exchange, subject to compliance with conditions under the Exit Circular, 2016.
Full text
Exit Order in respect of India Pepper and Spice Trade Association Page 2 of 5 5. Subsequently, the Exchange, vide letter dated June 23, 2017, submitted the following: i. There has been no trading activity at the exchange platform for more than twelve months. ii. The market of Pepper is also not conducive as there will be limited capacity left post export that can be traded at the Exchange. iii. The Exchange will not be able to attain the Net Worth requirement of ` 100 crore as stipulated by SEBI with respect to the demutualisation. iv. The Governing Board of IPSTA at its meeting held on June 6, 2017 resolved to take a formal voluntary exit as a recognised commodity exchange in terms of the Exit Policy. The same has been ratified by the member of the Exchange at the Extraordinary General Meeting held on June 23, 2017. Thus, IPSTA is liable to exit as a recognised commodity derivative exchange in terms of Paragraph 5 of the Exit Circular, 2016.
Exit Order in respect of India Pepper and Spice Trade Association Page 3 of 5 contribution/deposit to Settlement Guarantee Fund/Trade Guarantee Fund (SGF/TGF).
Exit Order in respect of India Pepper and Spice Trade Association Page 4 of 5 (d) With respect to condition mentioned in para 6(c)(iv) above, the Exchange has undertaken to refund deposit to the stock brokers and members including their initial contribution amounting to ` 1,12,500.
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Source: SecMarx — sebi:WTM/MPB/CDMRD/121/2018. 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.