Sebi cancels licence of brokerage house CNB Commodities in NSEL case

Markets regulator Sebi has cancelled the registration of brokerage house CNB Commodities for participating in illegal 'paired contracts' launched by the now defunct National Spot Exchange Ltd (NSEL). In addition, Sebi has asked the broker to allow its existing clients to withdraw or transfer their securities or funds held in its custody within 15 days. In case of failure of any clients to withdraw or transfer their securities or funds within this period, the broker will transfer the funds and securities of such clients to another broker within a period of the next 15 days thereon under the advice of the said clients. The case relates to the participation of CNB Commodities, which was a member of the NSEL, in 'paired contracts that did not have regulatory approval. The alleged transactions were carried out by the broker on the NSEL platform in 2012-13 and 2013-14. In its order, Sebi said there were enough red flags for a reasonable person to come to conclude that what was being off

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