Capital market regulator SEBI cancelled the registration of MMTC Ltd as a stockbroker for its involvement in an illegal ‘paired contract’ in a case pertaining to the defunct National Spot Exchange, the company informed stock exchanges on August 7.
"In terms of provisions... SEBI has cancelled the registration of MMTC LIMITED as a stockbroker for its involvement in an illegal “paired contract” in case pertaining to defunct National Spot Exchange Limited. As this information amount to material event, we are informing the stock exchange where our shares are listed," the company said in a regulatory filing.
This order shall come into force with immediate effect, MMTC added.
Meanwhile, shares of MMTC closed 0.69 percent lower at Rs 37.59 apiece on BSE on August 7. The scrip is down 2.36 percent on a year-to-date (YTD) basis.
Established in 1963, the Minerals and Metals Trading Corporation (MMTC) is one of the two highest foreign exchange earners for India with a turnover of over $7 billion. MMTC deals in the trading of minerals and is the single largest exporter of minerals from India. The company falls under Commerce Ministry.
The company has an international trade network spanning almost all countries in Asia, Europe, Africa, Oceania and the United States. The Miniratna company also has a wholly-owned international subsidiary in Singapore, MTPL.
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