The Securities and Exchange Board of India (SEBI) has declared the commodity broking arms of Motilal Oswal and India Infoline (IIFL) as 'not fit and proper', as part of an action in the NSEL case. These brokers were allegedly involved in illegal forward contracts at NSEL in contravention of the Forward Contract Regulations Act 1952 (FCRA). SEBI termed the contracts as illegal as NSEL had authority to allow trading only in spot contracts, which must be settled in 11 days. While SEBI’s 'not fit and proper' status applies to the commodity arms, it is unclear in terms of what it would mean for the unified broking business of the firms.

The Securities and Exchange Board of India (SEBI) has declared the commodity broking arms of Motilal Oswal and India Infoline (IIFL) as 'not fit and proper', as part of an action in the NSEL case. These brokers were allegedly involved in illegal forward contracts at NSEL in contravention of the Forward Contract Regulations Act 1952 (FCRA). SEBI termed the contracts as illegal as NSEL had authority to allow trading only in spot contracts, which must be settled in 11 days. While SEBI’s 'not fit and proper' status applies to the commodity arms, it is unclear in terms of what it would mean for the unified broking business of the firms.