NSEL case: On SEBI's complaint, Mumbai Police's EOW registers case against 300 traders

Acting on a complaint registered by the board of the Securities and Exchanges Board of India, the  Economic Offences Wing (EOW) of Mumbai Police has registered a case against 300 trading members of NSEL under Forward Contract Regulation Act, 1952, for illegal trading in commodities on the platform.

"SEBI moved EOW and registered complaint against brokers who used NSEL platform and were involved in misselling products," a source told Moneycontrol.

Moneycontrol had earlier reported that the regulator was looking at ways to ensure action was taken against all brokers.

However, there is no clarity whether SEBI is taking action against 24 defaulting members who traded on NSEL.

The Rs 5,600 crore-scam at NSEL involved a little over dozen commodity firms borrowing money on the NSEL platform by depositing commodities as collateral. Later, the borrowers defaulted when asked to settle their contracts, and in many case, the collateral was inadequate or simply missing.