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 recommendation to enchantment towards the order. IICL is the commodity dealer arm of IIFL. The corporation along side Motilal Oswal Commodities Broker changed into declared now not “healthy and right” by means of SEBI as part of the action in the NSEL case. The company is amongst three hundred brokerage corporations investigated by using SEBI for violation of the rule inside the National Spot Exchange Ltd (NSEL) scam. “IICL is looking for legal recommendation approximately entering into for appeal. We would really like to clarify to all our stakeholders and clients that this order has no effect on companies of different corporations of IIFL Group,” the brokerage stated in a assertion. The announcement similarly said that IICL does no longer have any terrific 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 noticee (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 commodity derivatives dealer. The noticee shall end 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 inside 45 days of the order. NSEL did no longer maintain enough underlying inventory on trades it allowed at the same time as agents sold moneymaking contracts to investors. This built defaults and resulted within the trade denying bills really worth Rs 5,600 crore in 2013.