Chennai: The government has said it has not made any recommendation to the NCLAT for declaring brokers involved in the payment crisis at the NSEL as “not fit and proper”, as such power lies with markets regulator Sebi. The Rs 5,600-crore National Spot Exchange Ltd (NSEL) payment scam came to light in 2013.
“The Ministry of Corporate Affairs has not made any recommendation to the National Company Law Appellate Tribunal (NCLAT) for declaring brokers involved in the payment crisis at NSEL as not fit and proper,” Minister of State for Finance, Pon Radhakrishnan, said in a written reply to the Lok Sabha.
Such powers to declare not fit and proper lies with the Securities and Exchange Board of India (Sebi), he added.
According to the Minister, the markets regulator has initiated enquiry proceedings against nine brokers based on the investigation report dated 31 August, 2018, received from the Serious Fraud Investigation Office (SFIO).