Sebi issues another show-cause notice to NSEL brokers in 2013 scam probe

Motilal Oswal Financial Services, Anand Rathi Shares and Stockbrokers Ltd. and India Infoline among companies served notice

Sebi on Thursday issued a supplementary show-cause notice (SCN) to equity markets brokers, including Motilal Oswal Financial Services, Anand Rathi Shares and Stockbrokers Ltd. and India Infoline, in connection with the Rs 5600-crore scam at the National Spot Exchange Ltd (NSEL) in 2013.

Sebi is investigating the alleged role of brokers in mis-selling of NSEL products that led to 13,000 investors losing Rs 5,600 crore. A senior Sebi official confirmed the notice but refused to comment on the text.

"We have received the notice and will respond in due course," said Ajay Menon, CEO, Broking and Distribution, Motilal Oswal Financial