NSEL settlement scheme: Sebi settles proceedings against 91 commodity brokers

Market regulator Sebi has settled proceedings against 91 commodity brokers in the National Spot Exchange Ltd (NSEL) matter, with several entities agreeing to temporary restrictions on proprietary trading and taking up new clients in the commodity segment.

This is part of a settlement scheme, introduced by Sebi for commodity brokers who traded on the now-defunct NSEL platform. The scheme remained open from August 25, 2025, to February 25, 2026.

In its settlement order dated September 9, Sebi said, "A total of 91 entities availed the benefit of the scheme and remitted the specified settlement amount".


Under the settlement terms, several brokers have agreed to a six-month voluntary debarment from trading in proprietary capacity and from taking up new clients in the commodity segment, while some have accepted a one-month restriction, the order noted.

Further, a number of applicants have no voluntary debarment condition.

The settlement amounts vary among the applicants, with most remitting around Rs 6 lakh. Some entities have paid significantly higher amounts, including Emkay Commotrade at Rs 30.84 lakh and Pace Commodity Brokers at Rs 36.05 lakh.

The 91 brokers include Religare Commodities Ltd, SMC Comtrade Ltd, Jainam Commodities and Adroit Commodities Services.

The settlements follow Sebi's NSEL Settlement Scheme, 2025, introduced for eligible entities against whom the regulator had passed orders in the NSEL matter and whose appeals were pending before the Securities Appellate Tribunal (SAT) or courts.

The scheme followed a December 12, 2023, order of SAT directing Sebi to consider and come out with a settlement scheme, preferably within three months.

Sebi subsequently introduced the NSEL Settlement Scheme 2025 under the Sebi Act and the Sebi (Settlement Proceedings) Regulations, 2018.

The scheme remained open from August 25, 2025, to February 25, 2026, allowing eligible entities to submit details and pay the applicable settlement amount through Sebi's online platform.

The scheme was restricted to settling violations relating to securities laws and did not affect matters being investigated by other law enforcement agencies under their respective jurisdictions.

The NSEL matter relates to the payment defaults at the now-defunct National Spot Exchange Ltd in 2013, which affected approximately 13,000 traders.