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SEBI orders special audit of 4 ICEX broking firms for alleged irregularities

Gogia Capital Services Ltd, MSB e-trade Securities Ltd, Mauzampuria Securities Broking and Findoc Commodities are the four brokers whose special audit will be conducted.

twitter-logoBusinessToday.In | February 22, 2021 | Updated 19:28 IST
SEBI orders special audit of 4 ICEX broking firms for alleged irregularities
The market regulator wants to do a special audit for investigating the money paid by ICEX management to the four brokers under the Liquidity Enhancement Scheme.

Markets regulator Securities and Exchange Board of India (SEBI) has ordered a special audit of four broking firms of Indian Commodity Exchange (ICEX) for alleged irregularities in commodity derivative contracts.

The market regulator wants to do a special audit for investigating the money paid by ICEX management to the four brokers under the Liquidity Enhancement Scheme (LES) for steel, isabgol, diamond, PB 1121 rice, pepper and rubber, MoneyControl reported.

The LES scheme was introduced by SEBI for enhancing liquidity in new contracts.

Also read: SEBI board eases public offer norms, paves way for LIC IPO

Gogia Capital Services Ltd, MSB e-trade Securities Ltd, Mauzampuria Securities Broking and Findoc Commodities are the four brokers whose special audit will be conducted.

"For checking the end use of the amount paid for market making and if it was routed back to the exchange, the regulator wants to do a special audit of these brokers," the publication quoted another source as saying.

SEBI had ordered forensic audit of ICEX in May last year based on complain of alleged misuse of LES by the officials of the exchange. The forensic report had called for further investigation of these brokers.

Also read: Sebi orders forensic audit of SunEdison Infrastructure

Also read: SEBI rolls out new disclosure format under insider trading rules

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