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Sebi cancels licence of govt’s PEC


MUMBAI: Markets regulator Sebi has cancelled the registration of PEC, a company promoted by the ministry of commerce that was registered as a commodities broker, because of trading on the NSEL before the spot exchange was asked to stop its operations in August 2013. In December that year, it was found that NSEL had violated regulatory directions that did not allow any short-selling on its platform. It was also found that NSEL was offering brokers to trade in contracts that were for durations of more than 11 days — another violation of rules. Sebi cancelled PEC’s registration even after it, in reply to a show-cause notice, said that it was not party to the alleged fraud on NSEL but a victim of it. About Rs 120 crore was still due from its counterparties on the exchange. Also, its trade data between 2010 and 2014 showed that of its total trading volume in commodities across various commodities exchanges and physical markets, including overseas trade, only about 4% was on NSEL.


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