Commodities arm of Motilal Oswal, India Infoline not 'fit and proper': Sebi

Sebi also asked all clients of the commodity broking firms to withdraw or transfer their securities held with the brokers within 45 days.

The Securities and Exchange Board of India (SEBI) in an order on Friday declared that the commodity broking arms of Motilal Oswal and India Infoline (IIFL) are not ‘fit and proper’to undertake commodities derivative trading, as part of an ongoing investigation into the NSEL case. 

Sebi's not ‘fit and proper’ status applies to the commodity arms of both the brokers and not their unified broking businesses."The Noticeeshall cease to act, directly or indirectly, as a commodity derivatives broker," said the order.

The market regulator is probing a Rs 5600 crore payment default which broke out at the spot commodity trading platform NSEL