logo

Motilal Oswal and India Infoline Commodity Broker are not eligible: Sebi

New Delhi : Market regulator SEBI has decided that Motilal Oswal Commodities Broker and Indian Infoline Commodities Commodity Derivative Broker are not suitable to work. SEBI has given this decision in relation to the Rs 5,600 crore NSEL scam. After the scam, the functioning of the National Spot Exchange (NSEL) was stopped.SEBI said that its credibility and reputation in any Broker's eligibility conditions is extremely important. The prestige of these two firms has been a big push. This verdict of SEBI came in connection with NSEL's payment scandal that came out in 2013. After the scandal broke at that time many companies including SEBI and other investigating agencies started scrutiny by several brokers.SEBI said in two separate orders issued on 22nd February, that Motilal Oswal Commodities and India Infoline Commodities can not be allowed to register for commodity derivatives to act as a broker. Market regulator has rejected the applications of Motilal Oswal on December 11 and December 16, 2015. It has also canceled the application of India Infoline December 23, 2015. According to the order, these two firms can not work directly or indirectly as a commodity broker.According to SEBI, Motilal Oswal and India Infoline are not suitable to work for two reasons. In the NSEL case both of them allegedly violated various laws and circulars. Not only this, various courts and officials have made adverse comments against these two firms regarding the transactions involving the contracts in NSEL. Due to accusations of these two, there are serious questions about their credibility and ability..