Edelweiss Financial Services Limited submitted a regulatory disclosure to BSE Limited and the National Stock Exchange of India Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The disclosure concerns Comtrade Commodities Services Limited (Comtrade), a wholly-owned subsidiary of Edelweiss. The Securities and Exchange Board of India (SEBI) has accepted the settlement application filed by Comtrade under the National Spot Exchange Limited (NSEL) Settlement Scheme 2025 and has passed a settlement order in favour of Comtrade.
The document provides historical context for the NSEL matter. The Forward Markets Commission (FMC), which administered the Forward Contracts (Regulation) Act, 1952 (FCRA), granted an exemption to NSEL in 2007. In September 2009, NSEL introduced paired contracts, which allowed simultaneous buying and selling in the same commodity through two different contracts. On February 06, 2012, FMC was appointed as the designated agency to collect trading data from NSEL. After analysis, FMC passed an order on December 17, 2013, observing that 55 contracts on the NSEL platform violated the FCRA and that the condition prohibiting short sales was not being complied with. FMC was merged with SEBI in 2015, and SEBI subsequently examined the role of members who traded on the NSEL platform, initiating enquiry proceedings against 302 stock brokers.
The Hon'ble Securities Appellate Tribunal (SAT), vide its order dated December 12, 2023, directed SEBI to consider a settlement scheme. Consequently, SEBI introduced the 'NSEL Settlement Scheme, 2025' under Section 15JB of the SEBI Act, 1992 and Regulation 26 of the SEBI (Settlement Proceedings) Regulations, 2018. Public Notices for the Scheme were issued on July 09, 2025, and August 17, 2026. The Scheme was open from August 25, 2025, to February 25, 2026. A total of 91 entities availed the benefit of the Scheme.
The settlement order, dated September 15, 2026, and signed by Whole Time Members Sandip Pradhan and K.V.R. Murty, states that proceedings are settled for the 91 applicants listed in Annexure-A. SEBI shall not initiate any further action against these applicants for the violations relating to the NSEL matter. The order is without prejudice to SEBI's right to initiate actions if any representation is found untrue, conditions are breached, or there is a failure to pay any difference due.
Comtrade Specifics: Comtrade Commodities Services Limited is listed as applicant number 77 in Annexure-A. Its PAN number is AABCA2781N. The settlement amount paid by Comtrade is ₹661,261. The non-monetary terms for Comtrade include "6 months of voluntary debarment from trading in proprietary capacity and from taking up new clients in commodity segment from passing of settlement order."
The disclosure from Edelweiss concludes by stating that Comtrade has not carried on any business activities since 2019. Therefore, the SEBI settlement order will not have any impact on the financials, operations, or other activities of Comtrade, Edelweiss Financial Services Limited, or its other subsidiaries.