the Finance Ministry with regard to its jurisdiction vis-a-vis NSEL matters and was told that Sebi will support the three- member committee set up by the Bombay High Court for effective recovery of investments from the defaulters of NSEL.
the Finance Ministry with regard to its jurisdiction vis-a-vis NSEL matters and was told that Sebi will support the three- member committee set up by the Bombay High Court for effective recovery of investments from the defaulters of NSEL.
The Finance Ministry also asked Sebi to ensure its representation in the meetings held for reviewing the progress in NSEL issue.
At the same time, the Ministry also clarified that since spot markets and ready delivery contracts were not being regulated by FMC, Sebi was also not expected to take upon itself any regulatory function with regard to such markets.
After Sebi took over regulation of commodity derivatives market, it has been receiving large number of representations from various organisations including NSEL Investors Action Group, NSEL Investors Forum and also from NSEL, seeking intervention including in recovery of dues from defaulters.
Sebi has also been required to act against NSEL brokers for various alleged irregularities and to apply Sebi regulations on CIS and Ponzi schemes with regard to trading at NSEL.
However, Sebi has clarified its position that it has no role to play in recovery from the defaulters of NSEL and the same was being dealt with by other agencies such as EOW and ED and also a high-powered committee set up by the court.
Sebi has also informed the Committee that the recovery matters pertaining to NSEL was were beyond Sebi's regulatory domain.
On action against brokers, Sebi looked into their role on the basis of the preliminary report of EOW which contained prima facie evidence of wrongdoings by some brokers.
Sebi set up an Internal Committee to examine the role of brokers and subsequently appointed auditors to conduct audit of books of accounts of five commodity derivative brokers whose name appeared in the interim report of EOW.
On the basis of auditors' report, Sebi initiated enquiry proceedings against these five brokers -- Anand Rathi Commodities Ltd, Geofin Comtrade Ltd, India Infoline Commodities Ltd, Motilal Oswal Commodities Brokers Pvt Ltd and Philip Commodities India Pvt Ltd.
Sebi also appointed a bench of Designated Authorities and they issued show cause notices in this matter. Besides, enquiry proceedings were initiated against the entities which are under the same management control of four brokers -- Anand Rathi Commodities Ltd, India Infoline Commodities Ltd, Motilal Oswal Commodities Brokers Pvt Ltd and Philip Commodities India Pvt Ltd.
Sebi has been attending the review meeting to oversee the action taken on recommendation of the Special Team of Secretaries on NSEL matter and has been apprising the committee of the action taken by it and the status thereon.
(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)
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