Commodity arms of Motilal Oswal, IIFL not 'fit and proper': Sebi

Regulator finds both entities involved in paired contract trades and rejects their applications to conduct commodity derivatives broking

Markets regulator the Securities and Exchange Board of India (Sebi) has declared Motilal Oswal Commodities Brokers (MOCB) and India Infoline Commodities (now IIFL Commodities) as ‘not fit and proper’ to conduct the commodity derivatives broking business directly or indirectly, as part of its action in the National Spot Exchange Ltd (NSEL) case. 

Both firms were commodity derivatives brokers and were found guilty of facilitating transactions in the paired contracts on the NSEL platform. 

In view of the close association of these brokers to NSEL and the paired contacts, and the relatability of the same, the serious adverse observations of the