The Securities and Exchange Board of India (SEBI) has granted Motilal Oswal Commodities Broker three weeks to reply to a show-cause notice in the NSEL matter.

SEBI also dismissed questions over its jurisdiction in its probe into mis-selling by five brokerages in the ₹5,500 crore scam involving the National Spot Exchange (NSEL).

Following defaults at NSEL in 2012, complaints were received from investors against the brokers on mis-selling of products.

After the merger of commodity regulator FMC, these brokers had applied to SEBI for registration as commodity brokers. In view of the requests made by the NSEL and Economic Offences Wing of the Mumbai police, the regulator had appointed an auditor to carry out an inspection of the five brokers.

SEBI had passed similar orders on August 30, directing Geofin Comtrade Ltd and Anand Rathi Commodities Ltd to file their respective replies within three weeks to the show cause notices (SCNs) issued to them in April 2017, while giving India Infoline Commodities Ltd two weeks time to file its reply.

Motilal Oswal Commodities has also been directed by SEBI to appear for a hearing on September 27 at the regulator’s head office in Mumbai.

“If the noticee (Motilal Oswal) opts not to submit a reply on merits or appear for the personal hearing on merits on the scheduled date or do both, then, in the interest of justice and to avoid any further delay in bringing the present quasi-judicial proceedings to a logical conclusion, the proceedings on merits shall proceed ex-parte on the basis of material available with SEBI,” the regulator said in an order.

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