Over 100 firms under SEBI lens in NSEL case

Auditor to inspect big 10 firms More than 100 brokerage firms, including several big names, have come under Securities and Exchange Board of India’s (SEBI) scanner for allegedly defrauding investors of over ₹4,0000000000 in the high-profile NSEL case, officials said on Wednesday. While proceedings are already under way against five brokers (Anand Rathi Commodities, Geofin Comtrade, Motilal Oswal Commodities Broker, Phillip Commodities India Private Limited and India Infoline Commodities), the regulator has identified 111 other brokerage firms under its jurisdiction for further possible action for allegedly defaulting on payments on the erstwhile National Spot Exchange Limited (NSEL) platform. Out of these, SEBI will first initiate inspection of the ten biggest players by appointing an auditor, while action against the remaining 101 entities registered as stock brokers with the capital markets regulator would be taken after receipt of digital forensic audit from the Mumbai Police’s Economic Offences Wing (EOW), which has been probing the NSEL case. The SEBI will apprise its board next week of the status on the NSEL matter and also seek approval for its proposed action against stock brokers.