1 year, 8 months ago

NSEL case: Sebi cancels MMTC’s stock broker licence, existing clients can withdraw funds in 15 days

The markets regulator Sebi said it has cancelled the licence of MMTC Ltd as a stock broker for its involvement in illegal “paired contracts” in a case related to National Spot Exchange Ltd. MTC traded in “paired contracts”, which did not have regulatory approval, the Sebi order said. “The noticee having traded in the ‘paired contracts’ on the NSEL, which was in violation of the conditions of the 2007 Exemption Notification and also the provisions of the Foreign Contribution Regulation Act, seriously calls into question the integrity, honesty and lack of ethical behaviour on its part,” Sebi said. By doing so, the stock broker failed to meet the “fit and proper” criteria mentioned in the intermediaries rules and accordingly Sebi has cancelled “the certificate of registration of the noticee ”, it said. According to a PTI report, in September 2009, NSEL introduced the concept of ‘paired contracts’ for trading, which allowed buying and selling of the same commodity through two different contracts at two different prices on the exchange platform, wherein the investors could buy a short duration contract and sell a long duration contract and vice-versa at the same time at a pre-determined price.

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Sebi cancels registration of 4 stock brokers
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Sebi cancels registration of 4 stock brokers

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6 years, 1 month ago

Sebi says Anand Rathi, Geofin Comtrade not fit for commodity derivatives trading

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6 years, 1 month ago

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