The Securities and Exchange Board of India (SEBI) is likely to unveil a settlement scheme for commodity brokers caught up in the long-standing NSEL case. According to sources familiar with the matter, the proposal is expected to be tabled at SEBI’s upcoming board meeting scheduled for June.
This long-anticipated move comes after multiple delays due to technical challenges and procedural complexities. A person close to the development mentioned, “Sebi may consider to take this specific settlement scheme to the board meeting, scheduled next month for approval.” The draft of the scheme is reportedly ready and will be notified once it gets the green light from the board.
However, not all brokers will be eligible for the scheme. A second source clarified that brokers against whom a charge sheet has been filed by any enforcement agency will not be allowed to apply under this scheme. The settlement will only be available to brokers currently facing proceedings initiated by SEBI.
Importantly, the proposed scheme will not offer immunity from actions taken by other investigative agencies. If a broker is already charge-sheeted by any such body, they may be disqualified under the ‘fit and proper’ criteria outlined in intermediary regulations.
An industry representative shared a positive outlook, stating, “It is a big overhang on the brokers and it’s time to move on from the past episode. It’s good that the regulator is finally considering the issue seriously.”
This development marks a significant step forward in resolving the regulatory overhang from the NSEL crisis, offering some relief to brokers looking to settle and move on with clean regulatory records.
