Sebi order on IIFL, Motilal Oswal: Brokerages did not have to exit business in all exchanges, says Jignesh Shah

After Securities and Exchange Board of India (Sebi) declared Motilal Oswal Financial Services and IIFL Holdings' commodity broking subsidiaries as not fit and proper, Jignesh Shah, on Monday said there is no need for brokerages to exit the business in all exchanges.

The founder and Chairman Emeritus, 63 Moons Group, said, "The recent investigation report by Economic Offences Wing (EOW) and Serious Fraud Investigation Office (SFIO), Sebi is now studying things in finer details. Now facts are getting established, roles of all others are also becoming clear and things will be clear further."

Sebi is investigating as many as 300 brokers on charges of colluding with NSEL to defraud investors. In the NSEL case, the exchange was found to have not maintained sufficient underlying stock on trades it allowed, even as brokers sold lucrative contracts to investors. In 2013, the exchange defaulted on payments worth Rs 5,600 crore.