SEBI took unbiased route to investigate in NSEL matter
With NSEL brokers’ books of accounts under the sword of the investigation, the Securities and Exchange Board of India (SEBI) has proved that it is using its prerogative for the best. The union government finally decided to proceed on the NSEL matter with an unbiased perspective, where it is treating all alike.
The audit team is formed by three of the imperative division of Capital Market watchdog, i.e. SEBI, which includes surveillance, investigation and commodities, where the directors of the same will be looking into the roles of brokers and allegations against them. Only then, the case will be clearer than before and justify the real accused, whether its brokers, who are to be blamed entirely for the whole crisis or there is something more to it. A person, familiar with the investigation, told a concerned media authority, on the condition of not revealing his name, “Books of accounts of the top brokers that sold NSEL schemes for 2011-12 and 2012-13 are being audited,” and another person, declining to be named, said, “The audit is to ascertain any instances of unexplained write-offs between commodities and securities segment.”
This much-needed audit’s objective includes finding out if there was any mis-selling of NSEL products with an assured returns’ promise. It additionally includes ascertaining any instances of unexplained write-offs between commodities and securities segment.
Currently, there are half a dozen brokers which are under the investigation and they are majorly involved in the NSEL matter, a person related to the matter, told a concerned media authority, requesting his name not to be mentioned.
Some of the brokers, on the other hand, have not received any notice or insinuation from the Securities and Exchange Board of India but they are still ready and willing to cooperate with the capital market regulator in every possible manner. The cooperation is well-appreciated because non-cooperation leads to more suspicion and the brokers are not ready to take any more risk of allegations against them at the moment.
The promoter of NSEL, i.e. Financial Technologies also appreciated this initiative of the government and is hoping for an unbiased verdict to be passed in times to come.