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NSEL scam: Govt didn't recommend NCLT to declare brokers 'fit and proper'

Such powers to declare not fit and proper lies with the Sebi

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Nsel Case  |  Economy Of India  |  Securities And Exchange Board Of India

Press Trust of India  |  New Delhi 

Brokerages face Sebi fire in NSEL scam

The government Friday said it has not made any recommendation to the NCLAT for declaring brokers involved in the payment crisis at the as "not fit and proper", as such power lies with markets regulator Sebi.

The Rs 5,600-crore Ltd (NSEL) payment scam came to light in 2013.

"The has not made any recommendation to the National Company Law Appellate Tribunal (NCLAT) for declaring brokers involved in the payment crisis at as not fit and proper," Minister of State for Finance Pon Radhakrishnan said in a written reply to the Lok Sabha.

Such powers to declare not fit and proper lies with the (Sebi), he added.

According to the minister, the markets regulator has initiated enquiry proceedings against nine brokers based on the investigation report dated August 31, 2018, received from the Serious Fraud Investigation Office (SFIO).

SFIO, multi-disciplinary organisation involved in detecting white-collar crimes/frauds and comes under the corporate affairs ministry, in its report referred the names of the brokers to Sebi for necessary action.

However, "SFIO in its report has not recommended the brokers to be declared unfit and improper, he added.

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First Published: Fri, January 04 2019. 17:45 IST
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