Mumbai: Market regulator Self registration has been canceled pec, a company promoted by the Ministry of Commerce which was registered as a commodity broker, on account of trading NSEL In August 2013 the spot exchange was asked to cease its operations.
In December that year, it was found that NSEL had violated regulatory directives, which did not permit any short-selling on its platform. It was also found that NSEL was offering Broker Trading in contracts that were for a period of more than 11 days – another breach of the rules.
SEBI canceled the registration of PEC, even after it, in response to the show cause notice, said that it was not a party to the alleged fraud on NSEL, but a victim of it. About Rs 120 crore was still outstanding on the exchange from its counterparties.
Furthermore, its trading data between 2010 and 2014 showed that its total trading volume in commodities on various commodity exchanges and physical markets, including foreign trade, accounted for only 4% on NSEL.
In December that year, it was found that NSEL had violated regulatory directives, which did not permit any short-selling on its platform. It was also found that NSEL was offering Broker Trading in contracts that were for a period of more than 11 days – another breach of the rules.
SEBI canceled the registration of PEC, even after it, in response to the show cause notice, said that it was not a party to the alleged fraud on NSEL, but a victim of it. About Rs 120 crore was still outstanding on the exchange from its counterparties.
Furthermore, its trading data between 2010 and 2014 showed that its total trading volume in commodities on various commodity exchanges and physical markets, including foreign trade, accounted for only 4% on NSEL.
.