Anand Rathi, Geofin Comtrade declared unfit for commodity broking

New Delhi, Feb 26 (IANS) After barring Motilal Oswal and India Infoline (IIFL) from carrying out commodity brokerage, the Securities and Exchange Board of India (SEBI) has said Geofin Comtrade and the commodity arm of Anand Rathi brokerage are "not fit" to operate as commodity derivatives brokers.

The decision was taken in the backdrop of the firms' involvement in the Rs 5,600-crore National Spot Exchange (NSEL) scam, the SEBI order said.

The order signed by Madhabi Puri Buch, Whole-Time Member, SEBI, said: "I... 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 shall cease to act, directly or indirectly, as a commodity derivatives broker," it said.

It also said in case of any existing clients of the noticee as commodity derivatives broker, the noticee shall allow such clients to withdraw or transfer their securities or funds held in its custody or withdraw any assignment given to it, without any additional cost to such clients within 45 days from the date of this order.

"In case of failure of any clients to withdraw or transfer their securities or funds within 45 days from the date of this order, the noticee shall transfer its balance clients with their corresponding securities and funds to another person, holding a valid certificate of registration to carry on such activity, within a further period of 30 days. Such person should not be directly or indirectly related to the noticee."

The order comes into immediate effect, it said.