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“The brokers have been claiming they were unaware of (illegal) activities at NSEL. There is ample evidence that they were instrumental in popularising the NSEL products and should be equally held responsible for duping investors,” said a source.
FTIL when contacted did not comment on the matter.
Brokers role in the NSEL scam is being investigated by various Economic Offences Wing of Mumbai Police. EOW source said that they have progressed in investigating the role of brokers in the scam and have also called them in for interrogation. Anand Rathi, Motilala Oswal, Geojit Comtrade, IIFL are some of the big brokers have already been questioned by EOW.
Around 200 brokers are said to have mis-sold NSEL products by promising an assured return to investors. In past, even NSEL Investors have also wrote to EOW demanding investigating the brokers role as for investors brokers were point of contact and brokers assured them returns.
EOW had earlier looked into the involvement of brokers in the case and are were studying their personal and client accounts.
The police had earlier said these brokers were first carrying out deals on their account and later, parting ways with investors to earn huge margins. The investigating agency had earlier warned that if need arise and they found concrete proofs, brokers' properties would also be attached.
