The Security Exchange Board of India has come down heavily on two of the brokers and stated that Anand Rathi Commodities and Geofin Comtrade which was earlier known as Geojit Comtrade are not fit and proper for commodity broking.
SEBI has arrived at this decision against the backdrop of the payment scam at the National Spot Exchange (NSEL) which came to light during 2013 following which many brokerage houses and firms also came under the radar of SEBI and other probe agencies.
The applications which were earlier filed by the Geojin Comtrade Limited and Anand Rathi Commodities for the purpose of registration as commodity derivatives brokers were rejected by SEBI on December 16, 2015.
SEBI stated that the reputation, integrity and the character of the Anand Rathi Commodities and Geofin Comtrade are questionable from the conduct of its business at NSEL as a commodity broker. The regulatory body also stated that following the seriousness of the matter, the conduct of the Noticee in its functioning as a commodity broker is questionable. It has destroyed the general reputation, honesty, record of fairness as well as integrity and has therefore affected the status as a fit and proper person.
On February 23, the SEBI had declared the Motilal Oswal Commodities and India Infoline Commodities as not 'fit and proper' to be a commodities derivatives broker due to its involvement in the Rs 5,500 crore National Spot Exchange Limited (NSEL) scam way back in 2013.