Capital markets regulator SEBI on Friday canceled the registration of KR Choksi Commodity Brokers. It has been found guilty of facilitating trading in illegal ‘paired contracts’ to its clients on the platform of National Spot Exchange Limited (NSEL).
In its order, SEBI said that the broker firm by facilitating trading in ‘paired contracts’ exposed its clients to the risks associated with trading in a product which is neither statutory nor regulatory permitted.
The Securities and Exchange Board of India (SEBI) in its order said, “Such conduct of KR Choksi Commodity Brokers as a market intermediary has seriously undermined the confidence of the regulator in the integrity and intent of NSEL’s platform.”
The market regulator said that after indulging in such serious malpractices, KR Choksi Commodity Brokers can no longer be considered fit for registration as Commodity Derivatives Broker in the securities market.