Addendum in the matter of Dark Fibre Leased Line connectivity allowed to certain Stock Brokers by NSE
- Order No.WTM/SKM/EFD1-DRAIII/16A/2019-20
Ratio decidendi
The rule this decision rests on
Where a restraining direction against a noticee prevents it from closing open derivative positions that existed when the direction was issued, the direction may be relaxed to the extent necessary to permit the noticee to close, settle or square up those positions. The relaxation is confined to that limited purpose and to the time limit of the earlier of the contract's expiry or two months from the original order. The relaxation is conditional on the noticee depositing the proceeds of closing those positions into a separate interest-bearing escrow account in a nationalised bank, to the extent of the amount directed to be deposited in the principal order. The escrow condition preserves the monetary direction while allowing the open positions to be unwound.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
ADDENDUM to the Order no. WTM/SKM/EFD1-DRAIII/16/2019-20 dated April 30, 2019
Re: In the matter of Dark Fibre/ Leased Line connectivity allowed to certain Stock Brokers by NSE.
1. Vide an order having reference no. WTM/SKM/EFD1-DRAIII/16/2019-20 dated April 30,2019, Noticee no.8 (Way2Wealth Brokers Private Limited) and Noticee no. 12 (GKN Securities) were directed at para l) and o) respectively, not to accept /induct/enrol any new client for a period of 1 year from the date of the order. Noticee no. 8 & Noticee no.12 were also directed not to undertake any trades on any stock exchange recognized by SEBI on their respective proprietary accounts for a period of 2 years. 2. Further, vide directions at para k) and n) of the aforestated order, Noticees were directed to deposit an amount along with interest as specified therein against the Noticees. 3. Subsequent to the issuance of the aforesaid order, it has been brought to my notice that the afore-mentioned two Noticees were holding open positions in Futures & Options and Currency Derivatives segments of securities market, as at the end of trading hours on April 30, 2019 (the date of issuance of the order) which need to be closed/settled/squared up by them. 4. Keeping the above in view, it is clarified that the directions issued in the aforesaid order stands relaxed for the limited purpose of allowing the Noticees for closing/settling /squaring up their respective existing open positions in the Futures & Options and Currency Derivatives segments, and accordingly the Noticee no. 8 and Noticee no. 12 are allowed to close/settle/square up their respective existing open positions in the Futures & Options and Currency Derivatives segments on or before the expiry date of respective contracts or within a period of two months from April 30, 2019 whichever is earlier, in terms of the contract.
Addendum in the matter of Dark Fibre/ Leased Line connectivity allowed to certain Stock Brokers by NSE.
5. The above relaxation shall be subject to the condition that the amount realised by the Noticee no. 8 and Noticee no. 12 on account of closing/settling/squaring up their existing open positions, shall be kept in a separate interest bearing escrow account in a Nationalised Bank to the extent indicated at paragraph k) and n) in the order dated April 30, 2019. 6. A copy of this order shall be served upon the recognized Stock Exchanges and Depositories for necessary compliance. 7. This order shall come into force with immediate effect.
-Sd-
S.K. MOHANTY DATE: May 03, 2019 WHOLE TIME MEMBER PLACE: MUMBAI SECURITIES AND EXCHANGE BOARD OF INDIA
Addendum in the matter of Dark Fibre/ Leased Line connectivity allowed to certain Stock Brokers by NSE.
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