Over 100 brokerage firms under Sebi scanner 
Over 100 brokerage firms under Sebi scanner 

More than 100 brokerage firms, including several big names, have come under capital market regulator Sebi's scanner for allegedly defrauding investors of over Rs 4,000 crore in the high-profile NSEL case, officials said.

While proceedings are already underway against five brokers (Anand Rathi Commodities, Geofin Comtrade, Motilal Oswal Commodities Broker, Phillip Commodities India Pvt Ltd and India Infoline Commodities), Sebi has identified 111 other brokerage firms under its jurisdiction for further possible action for allegedly defaulting on payments on the erstwhile National Spot Exchange Ltd (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 Sebi would be taken after receipt of digital forensic audit from the Mumbai Police's Economic Offence Wing (EOW), which has been probing the NSEL case. The Securities and Exchange Board of India (Sebi) will apprise its board of the status on the NSEL matter and also seek approval for its proposed action against stock brokers.

Overall, a total of 147 brokers have allegedly defaulted on payments to the tune of Rs 5,403 crore on the NSEL. Of these, 116 have applied or registered with Sebi as stock brokers and the remaining 31 members of the NSEL have not applied with markets regulator for registration.

Accordingly, 116 brokers are under Sebi's jurisdiction and they are now under the scanner of the markets regulator for allegedly defaulting on payments totalling Rs 4,033 crore. Further, Sebi board will consider a proposal that a complaint will be sent to EOW against brokers for action for participation on NSEL platform, senior officials said.


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