NSEL crisis: Govt asks Sebi to act against defaulting brokers

In order to expedite recovery of money in the Rs 5,574-crore National Spot Exchange Ltd (NSEL) payment crisis, the finance ministry on Thursday decided to take immediate steps for auction of non-encumbered properties.

At a meeting chaired by Department of Economic Affairs Secretary Shaktikanta Das, the government also asked the Securities and Exchange Board of India (SEBI) to initiate action against defaulting brokers in the case. The finance ministry advised the Maharashtra government to auction properties which do not have any encumbrance or have approval of the court. The Centre advised Maharashtra to appoint a senior advocate for this purpose and have the progress reviewed by the state Home Secretary on fortnightly basis, the finance ministry said.

“The Economic Offences Wing of Mumbai Police has secured property worth Rs 6,375 crore under the Maharashtra Protection of Interest of Depositors Act (MPIDA),” the statement said.