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Sebi cancels registration of 4 brokers in National Spot Exchange Ltd case
Sebi on Tuesday cancelled the registration of four brokerage houses for facilitating its clients to trade on the platform of the now defunct National Spot Exchange Ltd (NSEL) in illegal 'paired contracts'.
The brokerages whose registrations were cancelled were Share India Commodity Brokers, Sharewealth Commodities, CIL Commodities and Eureka Commodity Brokerage.
By providing such a facility of taking exposure to 'paired contracts', the brokers exposed their clients to the risk involved in trading in a product that did not have regulatory approval, Sebi said in four separate orders.
The acts by the brokers raised doubts on their competence to act as a registered securities market intermediaries, the orders noted.
Accordingly, the regulator noted that these entities do not satisfy "fit and proper person" criteria for holding the certificate of registration as brokers in the securities market and cancelled the registration of the brokerage houses.
This comes a day after Sebi cancelle