In a big development, commodity brokers have won relief from the Securities Appeals Tribunal (SAT) in the NSEL case. The appellate tribunal has ordered the Securities and Exchange Board of India (SEBI) to rehear the ‘fit and proper’ case in which these commodity brokers were deemed not ‘fit and proper’ by the body market regulation. Zee Business Brijesh Kumar report.
The case relates to irregularities in which some commodity brokers were found not to be “fit and proper” and appealed to the appellate court.
The SAT today announced its verdict on the matter. The case dates back to February 2019 where major brokers including Motilal Oswal Commodities, Anand Rathi Commodities IIFL Commodities, Phillip Commodities, Geofin Comtrade.
In the NSEL case, SEBI deemed these companies not “fit and proper” after finding their operation questionable. He had decided that their product licenses would not be renewed.
Commodity brokers challenged this SEBI order before the SAT.
The command was still not downloaded at the time of the story’s publication.
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This SEBI order was challenged by SAT Commodity Brokers and today the Appeals Tribunal issued this ruling on this matter. Community brokers got some relief. The SAT said the permanent members of SEBI must hear the case again. They look at it again and then place their order.
Kumar said that while the SAT’s order for a rehearing is a relief, it is temporary relief as the case will be reheard.