‘Unfit and appropriate’ case against brokers: NSEL gets relief from SC

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A bench led by judge RF Nariman while tolerating the delay in the new filing of the appeal by NSEL asked him to deposit Rs 20,000 with the committee of the legal aid service of SC.

The Supreme Court on Tuesday reinstated the appeal of National Spot Exchange Ltd (NSEL), part of 63 Moons Technologies (formerly Financial Technologies India Ltd), to the Securities Appeals Tribunal in a case related to “ not fit and appropriate ” entities in NSEL payment scam of 5,600 crore of Rs.

However, he imposed a cost of Rs 20,000 on the swap for delay in filing his appeal in court. A bench led by judge RF Nariman while tolerating the delay in the new filing of the appeal by NSEL asked him to deposit Rs 20,000 with the committee of the legal aid service of SC.

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NSEL had asked the Supreme Court to ask the SAT to hear its appeal in the “Not Fit and Proper” case against the major brokers. While lead lawyer P Chidambaram appeared for a leading broker, NSEL was represented by lead lawyer Mukul Rohtagi.

Sebi in 2019 had stated that around five major NSEL brokers – Anand Rathi Commodities, Motilal Oswal Commodities, India Infoline Commodities, Phillip Commodities and Geofin Comtrade – “ Not Fit and Proper ” to operate on the commodities exchange due to their role in the NSEL settlement crisis. from 2013.

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Although these brokers moved the SAT against Sebi’s order, NSEL also filed its appeal on the grounds that the market regulator failed to consider all of the allegations and documents. However, SAT had rejected the appeal for technical reasons of delay.

Earlier in May 2019, another bench led by Judge Nariman canceled the merger of 63 Moons Technologies promoted by Jignesh Shah with NSEL, the victim of a scam. She said the proposed merger did not meet the public policy criteria and that the merger order contradicted itself by stating that “NSEL is the alter ego of FTIL, and therefore, the two companies are virtually one. entity. In any event, it does not indicate how the “alter ego” argument affects the public interest ”.

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NSEL was banned in July 2013 from launching new contracts after being found to be contrary to the provisions of the FCRA.

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