sebi:WTM/SKM/CDMRD/2018/04

SEBI · SEBI · 2016-01-11 · Santosh Kumar Mohanty, Whole Time Member

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Facts / Headnote

Exit granted to ACE Derivatives and Commodity Exchange Limited as a stock exchange, with consequent withdrawal of recognition

Provisions invoked

• s. 11(1)
• s. 19
• s. 11(2)

Parties

• The ACE Derivatives and Commodity Exchange Limited

Holding

SEBI granted exit to The ACE Derivatives and Commodity Exchange Limited as a stock exchange and withdrew its recognition, on the condition that ACE complies with tax obligations, its undertakings, other Exit Circular conditions, changes its name to avoid any representation of exchange affiliation, maintains transaction databases under PMLA, and continues to comply with all applicable laws post-exit.

Full text

Exit Order in respect of The ACE Derivatives and Commodity Exchange Limited Page 2 of 5 5. SEBI issued a Circular No. CIR/CDMRD/DEA/01/2016 dated January 11, 2016 (hereinafter referred to as ”Exit Circular/Exit Policy”) laying out the mandatory requirements/ exit policy for all the commodity derivatives exchanges being deemed recognised Stock Exchanges under SCRA. In terms of clause 4 of the Exit Circular, 2016, if there is no trading operation on the platform of any commodity derivatives exchange for more than twelve months, then such exchange shall be liable to exit.

Exit Order in respect of The ACE Derivatives and Commodity Exchange Limited Page 3 of 5  In case of any shortfall in collection of dues of the brokers to SEBI, the commodity derivatives 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 (SGF/TGF).

Exit Order in respect of The ACE Derivatives and Commodity Exchange Limited Page 4 of 5 (d) With respect to condition mentioned in para 7(c) (iv) above, the Exchange has submitted in its Undertaking that there is no liability towards refund of deposit to the stock brokers including their initial contribution. However, the Exchange in its undertaking has stated that it holds an amount of ` 9,70,869 of the members that have defaulted on other exchanges.

Source: SecMarx — sebi:WTM/SKM/CDMRD/2018/04. 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.