NSEL rip-off: SEBI pronounces commodity hands of Motilal Oswal, IIFL ‘now not are compatible and right kind’

NSEL scam: SEBI declares commodity arms of Motilal Oswal, IIFL 'not fit and proper'

The Securities and Alternate Board of India (SEBI) has declared the commodity broking hands of Motilal Oswal and India Infoline (IIFL) as ‘now not are compatible and right kind’, as a part of motion within the NSEL case.

SEBI is investigating as many as 300 agents on fees of colluding with NSEL to defraud buyers. Within the NSEL case, the change used to be discovered to have now not maintained enough underlying inventory on trades it allowed, at the same time as agents offered profitable contracts to buyers. In 2013, the change defaulted on bills price Rs 5,600 crore.

In an order uploaded on its site on February 22, SEBI mentioned that the agents had a detailed affiliation with NSEL and allowed themselves to “transform a channel”.

“Thus… the noticee isn’t a are compatible and right kind individual to be granted registration/to perform as a commodity derivatives dealer”.

SEBI mentioned shoppers of the commodity broking corporations to withdraw or switch their securities held with the agents inside 45 days with none further price.

Probably the most different main agents who’re being probed within the NSEL case are Anand Rathi Commodities, Philip Commodities and Geofin Commodities.

Over the last few years, alternatively, a number of agents, together with Motilal Oswal and IIFL have moved their commodity broking arm below the similar unit that operates inventory broking below SEBI’s unified licence regime.

Whilst SEBI’s ‘now not are compatible and right kind’ standing applies to the commodity hands, it’s unclear when it comes to what it might imply for the unified broking industry of the companies.

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