SEBI takes tough action |
In an surprising order by the Securities and Exchange Board of India, it has declared leading brokers Motilal Oswal Commodities, India Infoline Commodities, Anand Rathi Commodities and Geofin Comtrade as not `fit and proper` to undertake commodities derivatives trading and has spread fear in other financial services firms over their future and the effect on their other business activities. Expectations are that several other brokers may face similar orders for their alleged role in the 771 million dollars National Spot Exchange Ltd scam in the year 2013. Major concern in the market is that whether SEBI and RBI will impose such criterias on other units like stock broking, NBFC`s, mutual funds and portfolio management services. Traditionally, Sebi has applied the rule to all the segments of a firm`s business. The regulator said it had initiated enquiry proceedings against about 300 brokers and is likely to pass orders on them. According to reports, Philip Commodities, is also under the scanner of the regulator.
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