NSEL scam: Sebi audit finds lapses at 5 brokers

In the NSEL case, brokers are facing allegations of mis-selling NSEL contracts

The Securities and Exchange Board of India (Sebi), the market regulator, has found lapses at five broking firms in the National Spot Exchange Ltd (NSEL) scam. 

According to an audit finding, the brokers failed to meet the “fit and proper” criteria and also found to be in violation of certain securities regulations. Based on the third-party audit report, the regulator has issued final show-cause notice to five brokerages. These are Anand Rathi Commodities, India Infoline Commodities (IIFL), Geofin Comtrade, Motilal Oswal Commodities, and Phillip Commodities. Sebi has given the brokers 21 days to reply to the notice.

“Prima facie evidence shows that