INSUBCONTINENT EXCLUSIVE:
The government Friday said it has not made any recommendation to NCLAT for declaring brokers involved in payment crisis at 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 National Company Law Appellate Tribunal (NCLAT) for declaring
brokers involved in payment crisis at NSEL as not fit and proper," Minister of State for Finance Pon Radhakrishnan said in a written reply
to Lok Sabha.
Such powers to declare not fit and proper lies with Securities and Exchange Board of India (Sebi), he added.
According to
minister, markets regulator has initiated enquiry proceedings against nine brokers based on investigation report dated August 31, 2018,
received from Serious Fraud Investigation Office (SFIO).
SFIO, multi-disciplinary organisation involved in detecting white-collar
crimes/frauds and comes under corporate affairs ministry, in its report referred names of brokers to Sebi for necessary action.
However,
"SFIO in its report has not recommended brokers to be declared unfit and improper, he added.
