'Not fit & proper': SAT scraps Sebi order against 5 brokers in NSEL case

Market regulator asked to conduct a fresh investigation into the matter and pass an order within six months.

The Securities Appellate Tribunal (SAT) has set aside a 2019 order passed by markets regulator - the Securities and Exchange Board of India (Sebi) - declaring five brokerages not ‘fit and proper’ for their alleged involvement in the National Spot Exchange (NSEL) fiasco.

“The impugned orders passed by the whole-time member (WTM) against the brokers cannot be sustained and are quashed. The appeals of the brokers are allowed,” said SAT in a 44-page order dated June 9.

The five brokers are IIFL Commodities, Geofin Comtrade, Anand Rathi Commodities, Phillip Commodities India, and Motilal Oswal Commodities Broker.

SAT decision, however, is