Sebi issues final show-cause notice in NSEL scam case to five big brokers

Charges include violation of 'fit and proper' norms; brokers given 21 days to reply to Sebi's notice

Market regulator Securities and Exchange Board of India (Sebi) has established lapses at five broking firms in the National Spot Exchange Limited (NSEL) scam. As per an audit finding, the brokers failed to meet the “fit and proper” criteria and also found to be in violation of certain securities regulations.

Based on the third-party audit report, the market regulator has issued final show-cause notice to five brokerages. These include- Anand Rathi Commodities, India Infoline Commodities (IIFL), Geofin Comtrade, Motilal Oswal Commodities, and Phillip Commodities. Sebi has given the brokers 21 days to submit their reply to the notice.

“Prima facie