Reply to show cause notice in 3 weeks: Sebi to Motilal Oswal on NSEL scam

The investigation relates to the Rs 56 bn payment default which broke out at the spot commodity trading platform NSEL in 2013

Markets regulator Securities and Exchange Board of India (Sebi) has ordered commodity broking firm Motilal Oswal Commodities Broker, an arm of India's leading equity broking and financial services firm Motilal Oswal Securities Ltd, to reply in three weeks to the regulator's show cause notice in the Rs 56 billion payment default at National Spot Exchange Ltd (NSEL).

In a late Monday-evening order, Sebi has asked Motilal Oswal Commodities Broker to appear for a personal hearing on September 27 at the regulator’s headquarters. The show cause notice was issued to Motilal Oswal Commodities Broker in April 2017 in connection with NSEL scam.