Bombay High Court rejects NSEL brokers' plea on de-registration from Sebi

Teams of brokers' counsels argued that the exchange has ceased conducting business and continuing with a defunct company makes no sense

The Bombay High Court on Thursday rejected a petition by NSEL (National Spot Exchange Ltd) brokers seeking their de-registration from the markets regulator, the Securities and Exchange Board of India (Sebi).

The two-judge bench, comprising Justice B R Gavai and Justice M S Karnik, observed that brokers had pled with a mala-fide intention in anticipation of stern action against them from Sebi. The regulator has already issued show cause notices (SCN) to all brokers named in the Rs 56-billion NSEL scam.

To avoid Sebi's action in the Rs 56-billion payment default at NSEL, leading broking firms named in various complaints