The Securities and Exchange Board of India (SEBI) is expected to introduce a settlement scheme for commodity brokers involved in the long-standing National Spot Exchange Limited (NSEL) case. The proposal is likely to be tabled at SEBI’s June 2025 board meeting, marking a significant step toward resolving regulatory overhangs.
Key Developments & Eligibility Criteria
- The scheme will allow commodity brokers facing SEBI proceedings to apply for settlement.
- Brokers against whom charge sheets have been filed by other agencies will not be eligible for the scheme.
- The settlement will not shield applicants from actions by other regulatory bodies, ensuring compliance with intermediary regulations.
Industry Reaction & Market Sentiment
- The move is seen as a relief for brokers, allowing them to move past the NSEL crisis that has lingered since 2013.
- SEBI’s high-level committee on conflict of interest has also met to discuss broader regulatory reforms.
Background on the NSEL Case
The NSEL scam, which surfaced in July 2013, involved mis-selling of paired contracts and fund diversion, affecting over 13,000 investors with claims exceeding ₹5,600 crore. SEBI has pursued over 300 cases against brokers, leading to prolonged litigation.
With SEBI’s settlement scheme expected soon, commodity brokers may finally see a resolution to the decade-old regulatory battle.
For more updates on financial regulations and corporate governance, stay tuned!
