Sebi cancels MMTC license

New Delhi: Capital markets regulator Sebi has cancelled the registration of MMTC Ltd as a stock broker for its involvement in illegal “paired contracts” in a case pertaining to now defunct National Spot Exchange Ltd (NSEL).

While cancelling the license, Sebi directed MMTC to allow its existing clients to withdraw or transfer their securities or funds held by it within 15 days. In case a client fails to do so, the broker will transfer the funds and securities of such clients to another registered broker in the next 15 days under advice to the said clients, Sebi said in its order on Wednesday.

Going by the order, MMTC is a commodity derivatives broker registered with Sebi, from December 2015 and is currently a member of the Multi Commodity Exchange of India Ltd (MCX). The broker made an application in September 2019 for surrendering its membership of MCX. However, the surrender application of MMTC is still pending with MCX.