A day after its commodity broker arm changed into declared undeserving for derivative buying and selling by using market regulator SEBI, Indian Infoline Commodities (IICL) on Saturday said it’s miles searching for legal advice to enchantment against the order. IICL is the commodity dealer arm of IIFL. The corporation, alongside Motilal Oswal Commodities Broker, changed into declared not “healthy and right” using SEBI as part of the NSEL case. The company is among three hundred brokerage corporations investigated by SEBI for violation of the rule in the National Spot Exchange Ltd (NSEL) scam. “IICL is looking for legal recommendations approximately entering into for appeal.
We would like to clarify to all our stakeholders and clients that this order does not affect companies of different corporations of IIFL Group,” the brokerage stated in a statement. The announcement similarly said that IICL no longer has any outstanding dues towards any clients, and it does not have any proprietary role. The order signed by way of Madhani Puri Buch, whole-time member of SEBI, stated: “I declare that the notice (IICL) isn’t always a healthy and right man or woman to maintain, at once or in a roundabout way, the certificate of registration as commodity derivatives broking, and hereby, reject the utility dated December 23, 2015, filed by India Infoline Commodities Limited for registration as a commodity derivatives dealer. The notice shall cease to act, without delay or indirectly, as a commodity derivatives broker.
” SEBI has additionally ordered both Motilal Oswal and IIFL to transfer securities of all their customers and allow withdrawal within 45 days of the order. This is because NSEL no longer maintained enough underlying inventory on trades it allowed simultaneously, as agents sold money-making contracts to investors. This built defaults and resulted in the trade-denying bills really worth Rs 5,600 crore in 2013.