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Commodity Broking Arm Of Motilal Oswal And IIFL ‘Not Fit And Proper’

Equitypandit_SEBI

Motilal Oswal Commodities Broker and IIFL Commodities have been declared as not ‘fit and proper’ by the SEBI, as part of the action in the NSEL case. SEBI is said to be investigating around 300 brokers on charges of colluding with NSEL to defraud investors.

SEBI, which appointed a Bench of Designated Authorities to look into the alleged violations, in an inquiry reports said, “In view of the seriousness of the matter, facts and circumstances of the case, the conduct of the Notice 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 Securities and Exchange Board of India (SEBI), which appointed the panel on October 2016, submitted the inquiry reports for both the companies while adding “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 market watchdog also said that they might also be considering to initiate prosecution proceedings against the commodity brokers, under relevant provisions. SEBI also ordered both brokers to allow clients to withdraw or transfer their securities or funds, without any additional cost within 45 days from the date of the order.

Read EquityPandit’s Technical Analysis Of Commodity Market

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