MOFSL, IIFL fall as Sebi declares commodity arms unfit to undertake trading

Sebi maintained that the two brokers had a close association with NSEL and allowed themselves to "become a channel".

Shares of Motilal Oswal Financial Services (MOFSL) and IIFL Holdings slipped as much as 5.11 per cent and 8.99 per cent, respectively in intra-day trade on BSE after the market regulator 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.

The market regulator is probing a Rs 5,600 crore payment default which broke out at the spot commodity trading platform NSEL in 2013 in