Settlement Order Details

The Company received Settlement Order No. PSD/SD/SettScheme/3/2025-26 dated September 09, 2026 from SEBI on September 11, 2026. The order settles proceedings against the Company for alleged participation in and/or facilitation of its client(s) in entering into paired contracts on the platform of National Spot Exchange Limited (NSEL).

Settlement Terms and Conditions

The settlement is subject to a condition of six months' voluntary debarment from trading in proprietary capacity and from taking up new clients in the commodity segment, commencing from the date of passing of the Settlement Order (September 09, 2026).

Financial Impact

The financial impact is limited to the settlement amount of ₹6,00,000 and application fee of ₹29,500 paid by the Company. There is no material impact on the financial, operations or other activities of the Company beyond these payments.

Historical Context and Violations

The proceedings stem from FMC's (Forward Markets Commission) December 17, 2013 order which found that 55 contracts traded on NSEL were contrary to FCRA provisions, the prohibition on short selling was not complied with, and paired contracts violated FCRA and exemption conditions. SEBI initiated enquiry proceedings against 302 stock brokers/members, with orders passed against 161 entities.

Settlement Scheme Background

Pursuant to SAT's December 12, 2023 order, SEBI introduced the NSEL Settlement Scheme, 2025 under Section 15JB of SEBI Act, 1992 read with Regulation 26 of Settlement Regulations, 2018. The scheme was open from August 25, 2025 to February 25, 2026. A total of 91 entities availed the benefit of the Scheme.

Company's Participation

The Company submitted its settlement application on January 28, 2026 (noted by Board of Directors) and remitted the prescribed fees. The Company appears at Serial No. 30 in Annexure-A of the settlement order.

Future Implications

SEBI shall not initiate any further action against the Company for the aforesaid violations, subject to conditions that no representations are found untrue, no clauses/conditions of undertakings are breached, and no payment discrepancies exist.

Compliance Requirement

The Company shall comply with the 6-month voluntary debarment condition from proprietary trading and new client onboarding in commodity segment effective September 09, 2026.