NSEL Scam: SEBI Declares Commodity Arms Of Motilal Oswal, IIFL ‘Not Fit And Proper’ - EcoFinBiz Blog

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NSEL Scam: SEBI Declares Commodity Arms Of Motilal Oswal, IIFL ‘Not Fit And Proper’

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Market regulator Securities and Exchange Board of India has declared the commodity broking arms of Motilal Oswal and India Infoline (IIFL) as not ‘fit and proper’, as part of the action in the NSEL case.

SEBI is investigating as many as 300 brokers on charges of colluding with NSEL to defraud investors.

“In view of the seriousness of the matter, facts and circumstances of the case, the conduct of the Noticee in its functioning as a commodity broker is questionable and has certainly eroded its general reputation, record of fairness, honesty and integrity and has therefore affected its status as a ‘fit and proper person’ to be an intermediary in the securities market,” the SEBI-appointed panel said in the submitted the inquiry reports for both the companies.

SEBI had appointed a Bench of Designated Authorities on October 2016, to request information into the alleged violations of various provisions under the regulations, 1992.

“The application of both the companies that were submitted for registration as commodity brokers may not be considered in the interest of the securities market and may be rejected,” the securities market regulator said, adding that they may also consider initiating prosecution proceedings under the relevant provisions for the irregularities committed by India Infoline Commodities and Motilal Oswal Commodities Broker

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