Markets regulator Sebi on Tuesday cancelled the registration of Siddhi Vinayak Commodities for facilitating its clients to trade in illegal paired contracts on the National Spot Exchange Ltd (now defunct).
The act of the noticee (Siddhi Vinayak Commodities) of executing trades in the ‘paired contracts’, which did not have requisite regulatory approval, raises doubts on the competence of the noticee to act as a registered securities market intermediary, Sebi said in the order.
“I hold that the noticee does not satisfy the ‘fit and proper person’ criteria under the norms and therefore, the continuance of the noticee as a broker will be detrimental to the interest of the securities market,” Sebi’s Executive Director Anand R Baiwar said in the order.
Sebi has asked the broker to allow its existing clients to withdraw or transfer their securities or funds held in its custody within 15 days.
In case of failure of any clients to withdraw or transfer their securities or funds within this .
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