Sebi to meet leading commodity brokers next week over Rs 56-bn NSEL case

The Securities and Exchange Board of India (Sebi) has convened a meeting of leading commodity brokers on the coming Tuesday, to hear them on the alleged violation of various trading laws in the Rs 56-billion National Spot Exchange (NSEL) payment default case.Sebi is yet to pronounce the final order in the case. The meeting is being convened after the brokers lost their case at the high court (HC) here in this regard.To avoid Sebi's stick, companies had sought de-registration of defunct commodity broking companies on NSEL. Sebi had refused and the HC upheld the stand. The brokers include Anand Rathi Commodities, Motilal Oswal Commodities, India Infoline Commodities, Phillip Commodities and Geofin Comtrade, all prominent names.Sources say these firms do not want to exit commodity broking but wish to do so under a different company banner."The markets regulator wants to give a final opportunity to these brokers, found guilty of mis-selling of paired contracts on the NSEL platform, ...

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