Phillip Commodities barred from commodity broking

Mumbai, Feb 28 (IANS) SEBI has barred Phillip Commodities India from commodity broking following probe into the Rs 5,600 crore NSEL scam. Phillip Commodities is the latest brokerage firm to feel the Securities and Exchange Board of India's (SEBI) heat. The order issued late on Wednesday declared the firm unfit to operate as a commodity derivatives brokerage.

Prior to this, the commodity arm of Motilal Oswal, India Infoline, Anand Rathi and Geofin Comtrade were barred from operating in the commodity derivatives segment. SEBI is probing as many as 300 brokers for violating rules colluding with the National Spot Exchange Ltd (NSEL) to defraud investors. 

The order signed by Madhabhi Puri Buch, whole time member of SEBI said, "I, in exercise of the powers... declare that the noticee is not a fit and proper person to hold, directly or indirectly, the certificate of registration as commodity derivatives broker."  "The noticee (Phillip Commodities India Pvt) shall cease to act, directly or indirectly, as a commodity derivatives broker."

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The order rejected the application filed by Phillip Commodities India and received by SEBI on December 16, 2015, for registration as commodity derivatives broker. The order shall come into force with immediate effect, it said.