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.
Over 100 brokerage firms under Sebi scanner
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.
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.