In the three years since it surfaced, the NSEL case has taken many twists and turns but uncertainty still looms large. Till 2016, much plausible and implausible reasoning surfaced concerning recovery of dues but the recourse suggested stood on slippery grounds and was discriminatory to say the least.
A positive step ahead was seen this year with market regulator, SEBI, setting up a committee to probe the role of brokers in the alleged scam. The committee was formed from three crucial divisions of the market body- surveillance, investigation and commodities.
The move has set into motion audit of books of account, and bank accounts of top six brokers with the highest exposure to the now defunct bourse. The scope of audit includes establishment of complaints filed by clients on account of mis-selling, false assurances, creating fake ledgers and selling NSEL contracts as investment vehicles.
“Books of accounts of the top brokers that sold NSEL schemes for 2011-12 and 2012-13 are being audited,” stated an official with developments of the case. “The audit is to ascertain any instances of unexplained write-offs between commodities and securities segment”, added another.
In a recent development, investigators emerged with evidence against brokers suggesting money laundering via sister concerns and associates. The court observed discrepancies in claims submitted by the various stakeholders and instances of misquotation of Permanent Account Numbers that led to barring of any information from being withheld.
The government has on its part called SEBI to take action against defaulting brokers. Union Finance Minister, Arun Jaitley was observed stating in the Parliament that properties valued at Rs 5,757 crore of the accused have been attached by EOW while 32 common properties worth at Rs 740 crore (by ED) and Rs 1,222.89 crore (by EOW) have also been attached.
The course adopted offers respite on two counts. First, that it focuses on the actual culprits instead of burdening innocent shareholders of another company and second, that it sends a signal of transparency and respect for rule of law abroad.
A positive step ahead was seen this year with market regulator, SEBI, setting up a committee to probe the role of brokers in the alleged scam. The committee was formed from three crucial divisions of the market body- surveillance, investigation and commodities.
The move has set into motion audit of books of account, and bank accounts of top six brokers with the highest exposure to the now defunct bourse. The scope of audit includes establishment of complaints filed by clients on account of mis-selling, false assurances, creating fake ledgers and selling NSEL contracts as investment vehicles.
“Books of accounts of the top brokers that sold NSEL schemes for 2011-12 and 2012-13 are being audited,” stated an official with developments of the case. “The audit is to ascertain any instances of unexplained write-offs between commodities and securities segment”, added another.
In a recent development, investigators emerged with evidence against brokers suggesting money laundering via sister concerns and associates. The court observed discrepancies in claims submitted by the various stakeholders and instances of misquotation of Permanent Account Numbers that led to barring of any information from being withheld.
The government has on its part called SEBI to take action against defaulting brokers. Union Finance Minister, Arun Jaitley was observed stating in the Parliament that properties valued at Rs 5,757 crore of the accused have been attached by EOW while 32 common properties worth at Rs 740 crore (by ED) and Rs 1,222.89 crore (by EOW) have also been attached.
The course adopted offers respite on two counts. First, that it focuses on the actual culprits instead of burdening innocent shareholders of another company and second, that it sends a signal of transparency and respect for rule of law abroad.