Sebi to act against defaulting brokers in NSEL scam

Sebi has been asked to take necessary action against the defaulting brokers in the nearly Rs 5,600-crore NSEL scam while the Corporate Affairs Ministry and other agencies including the Enforcement Directorate are also investigating the case, the government said today.
The nearly Rs 5,600-crore payment and settlement crisis at the National Spot Exchange Ltd (NSEL) came to light in late 2013 and since then the matter has come under the scanner of multiple agencies.
Union Minister Arun Jaitley today told Lok Sabha that other than Corporate Affairs Ministry, the Economic Offences Wing (EOW) of Mumbai police and the Directorate of Enforcement (ED) are also investigating the matter.

"Properties valued at Rs 5,757 crore (approximately) 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 Securities and Exchange Board of India to examine and take necessary action against the defaulting brokers," he said in a written reply.
The Corporate Affairs Ministry, in February, passed the final order for the merger of NSEL with its parent firm Financial Technologies (India) Ltd. However, the same has been kept in abeyance following orders of the Bombay High Court.

According to the reply, a total of 50,389 representations were received during March to October 2015 in response to a public notice related to the proposed merger of NSEL with FTIL.