In a major regulatory move, the Securities and Exchange Board of India (SEBI) has introduced a one-time settlement scheme for stockbrokers who traded on the now-defunct National Spot Exchange Ltd (NSEL) platform. The scheme aims to expedite the resolution of enforcement actions pending since the infamous ₹5,600 crore NSEL payment crisis of 2013.
🧾 Who Is Eligible?
The scheme is open to stockbrokers registered with SEBI who were involved in trading on the NSEL platform and are currently facing regulatory proceedings. However, it excludes brokers:
- Named in charge sheets filed by the Economic Offences Wing (EOW), Enforcement Directorate (ED), or other law enforcement agencies
- Declared defaulters by stock exchanges
💰 Monetary and Non-Monetary Terms
The settlement amount will be calculated based on:
- Volume of paired contracts traded
- Total traded value, with a minimum settlement amount of ₹5 lakh
- A tiered fee structure ranging from ₹1 lakh to ₹5 lakh depending on trade volume
Non-monetary terms include voluntary debarment from the securities market for 1 to 6 months, adjusted for any prior debarment already served.
📅 Application Timeline
SEBI has not yet announced the final deadline, but the scheme is expected to be open for a limited window, encouraging brokers to settle early and avoid prolonged litigation.
🧩 Background: The NSEL Crisis
The NSEL crisis erupted in July 2013 when the exchange defaulted on payouts to investors, triggering one of India’s largest financial scandals. Over 300 brokers received show-cause notices from SEBI, and the matter has been under regulatory scrutiny for over a decade.
This settlement scheme follows recommendations from SEBI’s High Power Advisory Committee (HPAC) and is seen as a step toward regulatory closure and investor relief.
Stay tuned for updates on application deadlines and broker responses.
