Oct 17, 2016 11:31 AM IST IST | Source: Moneycontrol.com
SEBI appoints 3-member panel to look into NSEL cases: Report
The initial probe in the case had revealed that some brokers involved in the NSEL‘s Rs 5,574 crore payments crisis had mis-sold products. The investigations have concluded last month and the case has been referred to a bench under Section 11 (B) of SEBI, which protects the interest of market, says a Livemint report.
The Securities and Exchange Board of India (SEBI) has appointed a three-member panel to adjudicate in the on-going National Spot Exchange (NSEL) scam.
The initial probe in the case had revealed that some brokers involved in the NSEL’s Rs 5,574 crore payments crisis had mis-sold products. The investigations have concluded last month and the case has been referred to a bench under Section 11 (B) of SEBI, which protects the interest of the market, says a Livemint report.
The action is this case is likely to be monetary penalty or suspending the licence of the commodity broking.
SEBI has demanded an audit of books of five brokers who have been investigated by the Economics Offence Wing (EOW). This came after SEBI had formed a team in March to look into the matter, which had led to losses of Rs 13,000 crore for investors.
The audits are for books of 2011-12 and 2012-13 to investigate allegations of mis-selling of NSEL products as investment opportunities misleading the investors.
The five brokers include Anand Rathi Financial Services, India Infoline Commodities, Geofin Comtrade, Motilal Oswal Commodities and Philip Commodities.
The report by Mint also mentions that Anand Rathi spokesperson has said that no communication by the SEBI has been received so far in relation to the case and that the company has necessary documents to defend itself.
IIFL, Motilal Oswal and Geofin too said it is not aware of such proceedings.