sebi:WTM/SM/MIRSD/DOP/15012/2021-22
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Facts / Headnote
Cancellation of registration of K R Choksey Commodity Brokers Private Limited (SEBI Registration No. INZ000032234) as commodity derivatives broker
Provisions invoked
- s. 19
- s. 12
- s. 3(1)
- s. 27
- s. 12(3)
- s. 132
- s. 3(2)
- s. 131(5)
Regulations
- Reg. 6
- Reg. 27
- Reg. 9
- Reg. 7
- Reg. 9(b)
- Reg. 28
- Reg. 28(1)
- Reg. 25(1)
- Reg. 5(e)
- Reg. 24(2)
- Reg. 24(1)
Parties
- K R Choksey Commodity Brokers Private Limited
Holding
The Noticee, K R Choksey Commodity Brokers Private Limited, is not a 'fit and proper' person in terms of regulation 5(e) read with regulation 27(iv) of the Stock Brokers Regulations, 1992 read with Schedule II of the Intermediaries Regulations, 2008, and its registration as a commodity derivatives broker (INZ000032234) is cancelled.
Full text
Final order in respect of K R Choksey Commodity Brokers Private Limited. in the matter of National Spot Exchange Ltd. Page 1 of 33 WTM/SM/MIRSD/DOP/15012/2021-22 SECURITIES AND EXCHANGE BOARD OF INDIA
Final order in respect of K R Choksey Commodity Brokers Private Limited. in the matter of National Spot Exchange Ltd. Page 2 of 33 all outstanding positions of the trades at the end of the day shall result in delivery. All information or returns relating to the trade as and when asked for shall be provided to the Central Government or its designated agency; On the basis of the afore-stated exemptions, NSEL commenced its operations in October 2008 by providing an electronic trading platform to participants for spot trading of commodities such as bullion, agricultural produce, metals, etc.
Final order in respect of K R Choksey Commodity Brokers Private Limited. in the matter of National Spot Exchange Ltd. Page 3 of 33 dated July 12, 2013 thereby directing NSEL not to launch any further/fresh contracts until further instructions and to settle all existing contracts on their respective due dates. Subsequently, certain entities who were primarily borrowing on the NSEL platform through the modus of trading in the aforesaid ‘paired contracts’, defaulted in fulfilling their payment obligations leading to a huge settlement default of outstanding contracts to the tune of INR 5500 Crores.
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Source: SecMarx — sebi:WTM/SM/MIRSD/DOP/15012/2021-22. 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.