Commodities

SC likely to hear NSEL plea on Tuesday

KR Srivats New Delhi | Updated on February 23, 2021

Exchange wants court to direct SAT to hear its intervention in commodity brokers ‘fit and proper’ appeal issue

The Supreme Court is likely to hear on Tuesday the scam-hit National Spot Exchange Ltd (NSEL) plea seeking a direction to the Securities and Appellate Tribunal (SAT) on its appeal in the “Not fit and Proper” case against certain leading commodity derivative brokers.

It may be recalled that the NSEL had knocked the doors of the apex court in December 2019 after the SAT declined on technical grounds the delay to entertain its intervention in the commodity brokers appeal against the “not fit and proper” order passed by SEBI.

SEBI had, in February-end 2019, declared the commodity arms of leading brokerage houses as “not fit and proper” for their role in the NSEL scam. The firms that were declared “unfit” by the regulator were commodity arms of Anand Rathi, Motilal Oswal, India Infoline, Geofin and Philip Capital.

It now transpires that these broking firms have now lined up legal heavyweights including former Finance Minister P Chidambaram and Ankur Chawla to defend in the case.

“Former finance minister defending ‘not fit and proper’ brokers in NSEL scam says it all, the least it does is confirm the conspiracy. If brokers are not guilty of any wrongdoings, why are they afraid of accepting SAT hearing with NSEL intervention?”, a NSEL spokesperson asked when contacted.

The ₹5,600-crore NSEL payment crisis came to light in July 2013. Nearly eight years have passed and there is still no finality in bringing to book those who perpetrated this crisis.

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Published on February 22, 2021
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