MADURAI
The Madurai Bench of the Madras High Court on Monday reserved its orders in the National Spot Exchange Limited (NSEL) scam case, in which at least 300 brokers are said to have been involved in wrongdoings to the extent of ₹5,600 crore.
A Division Bench of Justices K.K. Sasidharan and P.D. Audikesavalu reserved its orders in the case after Securities and Exchange Board of India (SEBI) submitted the names of 300 brokers involved in the scam. The names were submitted in a sealed cover to maintain confidentiality as it would affect the stock market.
The court was hearing a contempt petition filed by L. Palpandi of Virudhunagar after the authorities concerned failed to initiate action against those involved in the scam.
Arguing for the petitioner, P. Wilson said no action was taken by SEBI to appoint an investigating officer to proceed against the brokers involved in the scam. Given the magnitude of the scam, the brokers could not be allowed to go scot free. SEBI and the Ministry of Corporate Affairs should act against the brokers in accordance with the Companies Act, he said.
The scam came to light in 2013 when Grant Thornton India LLP carried out an audit of the NSEL as per the orders of the regulator of markets, the Forward Markets Commission (FMC). It was revealed that the NSEL platform was misused by brokers. The brokers of the spot commodity exchange were trading without actual stock, it was found in the audit.
