Bombay High Court rejects NSEL brokers' plea on de-registration from Sebi

The high court (HC) here has rejected the plea of brokers at the now-defunct National Spot Exchange (NSEL) for de-registration from the markets regulator, the Securities and Exchange Board of India (Sebi).The two-judge bench of B R Gavai and M S Karnik said the brokers' intention was mala fide and in anticipation of stern action against them by Sebi. The regulator has already issued a showcause notice (SCN) to all brokers named in the Rs 56-billion NSEL scam; this was challenged at the HC. To avoid the Sebi action, leading brokerages that had been named in various complaints and chargesheets had applied for de-registration but Sebi rejected these requests.After merger of the Forward Markets Commission (FMC) into Sebi three years earlier, the latter had issued SCNs to leading brokerages such as Motilal Oswal Commodities, Anand Rathi Commodities and India Infoline Commodities, among others, asking why they should not be declared as meeting the 'not fit and proper' category for their ...

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