Sebi issues public notice on NSEL Settlement Scheme for brokers

Sebi had passed orders against more than 300 brokers in the NSEL case of 2013, and cases were pending at the tribunal SAT. Later, SAT suggested such a scheme, which Sebi approved in its board meeting on June 18.

Moneycontrol World Desk

July 09, 2025 / 20:24 IST

Sebi issues public notice on NSEL Settlement Scheme for brokers

Sebi has issued a public notice on July 9, about the settlement scheme in the NSEL Brokers case. Sebi said the scheme is for brokers against whom it had passed orders for trading or facilitating trading on the NSEL platform, and who have filed appeals against the Sebi orders, which are pending before the Securities Appellate Tribunal or courts.

Moneycontrol had reported on May 21 that Sebi is considering such a proposal. Later, Sebi approved the same on June 18.

Sebi has clarified that this settlement scheme is for settling only the violations relating to the securities laws, without any bearing on the matters which are being investigated by other law enforcement agencies falling under their jurisdictions.

Also, the scheme won’t be applicable to those brokers whose names appear in the charge sheet filed by the Economic Offences Wing (EoW), Enforcement Directorate (ED), SFIO, or any other law enforcement agency in the NSEL case. Those brokers who are defaulters at the stock exchanges on the date of the filing of the settlement application under the scheme will also not be able to avail themselves of the settlement scheme.

Sebi has also clarified in the public notice that if in the future any charge sheet is filed by any law enforcement agency against any broker who availed of the settlement scheme, the settlement with that broker will become void.