NSE cautions members against defaulting entities in NSEL scam

NEW DELHI: The National Stock Exchange ( NSE) today cautioned its trading members against dealing with defaulting brokers of the nearly Rs 5,600 crore NSEL scam.

The payment and settlement crisis at the National Spot Exchange Ltd (NSEL) came to light in late 2013 and since then it has come under the scanner of multiple agencies.

"As required by Sebi, exchanges are issuing necessary advisory to members to exercise caution while dealing directly or indirectly with any of the 22 defaulters of NSEL and their associated companies and individuals," NSE said in a circular.

Last month, Minister of State for Finance Arjun Ram Meghwal had said that markets regulator Sebi is probing commodity brokers for alleged default in the NSEL payment case.

Besides, Sebi forwarded the findings to Economic Offence Wing, Department of Revenue, RBI, Department of Consumer Affairs and Directorate of Enforcement for taking necessary action, he had said.