Securities and Exchange Board of India (SEBI), roped in for NSEL case, has been given the go-ahead for top-down investigations to bring to light broker transgressions in the case. The case, which came to light in 2013,will now be headed by SEBI in conjunction with the Corporate Affairs Ministry and other agencies like Enforcement Directorate. The new direction is going to put defaulting brokers in spotlight- a facet the entrepreneur fraternity has since long been seeking.
Lok Sabha was recently informed by Union Minister, Mr. Arun Jaitley, that other than the Corporate Affairs Ministry, the Economic Offences Wing of Mumbai Police and Directorate of Enforcement will continue their investigation.
"Properties valued at Rs 5,757 crore (approximately) of the accused have been attached by EOW while 32 common properties valued at Rs 740 crore (by ED) and Rs 1,222.89 crore (by EOW) have been attached.
"Further, directions have also been given to the Securities and Exchange Board of India to examine and take necessary action against the defaulting brokers," he said in a written reply.
Since the time when this case saw the light of the day, multiple agencies have been positioned to handle it. The merger order between FTIL and NSEL has been challenged on multiple grounds, including the 63k shareholders of FTIL who stand to lose out as they’d have to cough up Rs. 5600 crore to fill in for defaulting brokers and traders at NSEL. This situation becomes more baffling as FTIL cash reserves amount only to Rs 2000 crore.
The Corporate Affairs Ministry in February passed the final order on the merger between these two financial bodies. However the topic has been on hold basis the order of the Bombay High Court. A total of 50,389 representations were received during the time period of March to October 2015 in response to a public notice related to the proposed merger of NSEL with FTIL.
Lok Sabha was recently informed by Union Minister, Mr. Arun Jaitley, that other than the Corporate Affairs Ministry, the Economic Offences Wing of Mumbai Police and Directorate of Enforcement will continue their investigation.
"Properties valued at Rs 5,757 crore (approximately) of the accused have been attached by EOW while 32 common properties valued at Rs 740 crore (by ED) and Rs 1,222.89 crore (by EOW) have been attached.
"Further, directions have also been given to the Securities and Exchange Board of India to examine and take necessary action against the defaulting brokers," he said in a written reply.
Since the time when this case saw the light of the day, multiple agencies have been positioned to handle it. The merger order between FTIL and NSEL has been challenged on multiple grounds, including the 63k shareholders of FTIL who stand to lose out as they’d have to cough up Rs. 5600 crore to fill in for defaulting brokers and traders at NSEL. This situation becomes more baffling as FTIL cash reserves amount only to Rs 2000 crore.
The Corporate Affairs Ministry in February passed the final order on the merger between these two financial bodies. However the topic has been on hold basis the order of the Bombay High Court. A total of 50,389 representations were received during the time period of March to October 2015 in response to a public notice related to the proposed merger of NSEL with FTIL.