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Investigations into the NSEL scam has taken a new turn with an investor claiming that broking firms used their NBFC arm to route money into the exchange.
Udaipur-based NSEL investor Achal Agarwal has written to the police and the exchange alleging that his account was used by Geofin Comtrade to route its NBFC arm Geojit Credits’ money into NSEL.
With this, the focus of investigation has now shifted to investors funding and possible role played by NBFCs of the broking firms.
The Bombay High Court recently gave powers to the High Court Committee to seek KYC (know your customer) details from NSEL investors.
Agarwal told BusinessLine : “I was shocked to see an outstanding receivable of ₹4 crore against my name in an NSEL document as I had invested only ₹9.75 lakh.”
Through his chartered accountant, Agarwal managed to get all the documents related to his account from the broker and found that his signature was forged to thrust a loan of ₹4 crore on him.
Many of the investors in Udaipur are finding it difficult to get the documents related to their accounts from brokers, he said.
Geofin Comtrade did not respond to the questionnaire sent by BusinessLine.
Ketan Shah had filed a case against Motilal Oswal Group of companies and few other broking firms in the High Court and Maharashtra Protection of Investors Deposit for fraudulently investing ₹9.66 crore through his account when his total investment was only ₹2.26 crore.
Ajay Menon, Director and Chief Operating Officer, Motilal Oswal Securities, said: “Ketan Shah was repeatedly filing cases in EoW and the courts with frivolous allegations against us. Many of them have been dismissed by the authorities. The active ones will be represented at the Court as and when it comes up for hearing.”
Further, he said that the broking firm has filed a complaint in cyber-cell against Shah.
On investors claim that NBFCs investment in NSEL violates Reserve Bank of India guideline as they are prohibited from trading in online commodity platform, broking firms have said they were lending investors against their receivables from exchange.
However, NSEL sources claim that it was not informed of this funding arrangement.
Both SEBI and RBI had recently cracked down on the “unofficial margin trading” in the stock market by cutting down NBFCs’ lending against share from 70 per cent to 50 per cent.
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