NSEL scam: SEBI asked to examine defaulting brokers, says Jaitley

Priya sundarajan | | Updated on: May 01, 2016
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The Centre has directed market regulator SEBI to "examine" and "take necessary action" against defaulting brokers in the Rs 5,574 crore-NSEL scam, Parliament was informed on Friday.

Besides the Corporate Affairs Ministry, the Economic Offences Wing (EOW) of Mumbai Police and the Directorate of Enforcement are also investigating the NSEL crisis matter, Arun Jaitley, Corporate Affairs Minister, said in a written reply to Lok Sabha question.

In his reply, Jaitley also said that a total of 50,389 representations (physical Papers as well as emails) were received during March 2015 to October 2015 in response to the public notice issued by the Corporate Affairs Ministry on the draft merger order.


SEBI, which is also the regulator of commodity markets now, has already initiated audit of five brokers named in the March 31 interim order of Bombay High Court Committee on NSEL, it is learnt.

The five brokers under audit lens are Anand Rathi Commodities, India Infoline Commodities, Geofin Commtrade, Phillip Commodities and Motilal Oswal Commodities.

In its interim order passed on March 31, the Bombay High Court--appointed committee had highlighted discrepancies of the brokers in NSEL case.


Meanwhile, Jaitley said in his written reply that representations had been received asking for early action against the persons responsible for the National Spot Exchange Limited (NSEL) crisis.

He said that properties valued at Rs 5,757 crore of the accused have been attached by EOW while 32 common properties valued at Rs 740 crore (by ED) and Rs 1,222.89 crore (by EOW) have been attached.

"Further, directions have also been given to the SEBI to examine and take necessary action against the defaulting brokers", Jaitley said.

The Corporate Affairs Ministry had in February this year issued final order for amalgamation of NSEL with Financial Technologies (India) Ltd (FTIL).

However, the Bombay High Court had kept this order in abeyance till April 22. The next hearing on this matter is slated for Monday.

As many as 45,803 FTIL shareholders have opposed the merger of NSEL with FTIL, Jaitley's reply showed. The crisis ridden NSEL is almost entirely owned by FTIL.

Published on January 27, 2018

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