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SEBI DECLARES PEC AS ‘NOT FIT & PROPER’

SEBI DECLARES PEC AS ‘NOT FIT & PROPER’

Context:

The Securities and Exchange Board of India (SEBI) has declared a state-owned company as ‘Not Fit and Proper’ for the first time. PEC Ltd is a 100% owned company. It has been declared ‘Not Fit and Proper’ to operate as a broker between 2010 and 2013 and to carry out illegal activities on the NSEL platform.

Key Points:

  • According to a report by the Hindu Business Line, it has reviewed a copy of the order issued on October 8.
  • According to the report, legal experts are of the view that it is a question that has been resolved in the courts that the company cannot be dishonest on its own.
  • He or she will not personally engage in any illegal activity or have a bad reputation, as may be the responsibility of senior management or the board, which should be considered.
  • According to experts, the cancellation of the registration of 100% of state-owned enterprises raises questions about the conduct of a government official, who was in charge of the company.
  • Previously, whenever SEBI declared businesses not fit and proper in high-profile cases, including those in Sahara India and Financial Technologies (63 Moons Technologies), the regulator studied the role of its management, board and promoters.

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