Sebi issues public notice on NSEL settlement scheme for brokers

The Securities and Exchange Board of India (Sebi) has issued a public notice announcing a proposed NSEL settlement scheme under Section 15JB of the Sebi Act, 1992, read with Regulation 26 of the Sebi (Settlement Proceedings) Regulations, 2018.

This scheme is aimed at brokers against whom Sebi has passed orders for trading or facilitating trading on the now-defunct National Spot Exchange Ltd (NSEL) platform and whose appeals are currently pending before the Securities Appellate Tribunal (SAT) or other courts.

The scheme is designed solely to settle violations of securities laws and does not affect matters under investigation by other law enforcement agencies such as the Economic Offences Wing (EOW), Enforcement Directorate (ED), Ministry of Corporate Affairs (MCA) or the Serious Fraud Investigation Office (SFIO).

However, Sebi clarified that the scheme will not apply to brokers named in charge sheets filed by any law enforcement agency or those who are defaulters at stock exchanges at the time of applying.

Further, if a charge sheet is filed in the future by agencies like the EOW, ED, MCA or SFIO against any broker who avails of this scheme, the settlement granted under this scheme will automatically stand void.

The scheme will be open for a limited period -- beginning August 25, 2025, and closing on February 25, 2026 (both days inclusive).

To assist stakeholders, Sebi will publish a set of Frequently Asked Questions (FAQs) regarding the scheme on its official website starting August 25, 2025.

This move marks another step in Sebi's ongoing efforts to resolve regulatory violations connected with the NSEL crisis.