NSEL scam: Sebi bans five major commodity brokers for six months

The Securities and Exchange Board of India (Sebi) on Tuesday imposed a six-month ban on five brokerages from obtaining fresh registrations as commodity brokers for their involvement in the National Spot Exchange (NSEL) scam.

The brokerages include Anand Rathi Commodities, Motilal Oswal Commodity Broker, Phillip Commodities India, India Infoline Commodities and Geofin Comtrade. 

The brokers had appealed to the Securities Appellate Tribunal (SAT) against a previous order by Sebi issued in 2019.

Sebi had declared these commodity brokers as ‘not fit and proper’ under Intermediaries Regulations because of their association with NSEL. In June, the SAT had remanded this matter