On June 18, 2025, the Securities and Exchange Board of India (SEBI), in its 210th Board Meeting, approved a targeted settlement scheme for stock brokers who traded on the National Spot Exchange Limited (NSEL). This initiative, based on recommendations from the High Power Advisory Committee, is introduced under Regulation 26 of the SEBI (Settlement Proceedings) Regulations, 2018.
Key Features of the Scheme:
1. Eligibility:
- Applies to brokers who traded on the NSEL platform and are registered or have applied to SEBI as Trading or Clearing Members under the SEBI (Stock Brokers) Regulations, 1992.
2. Monetary Terms:
- Based on quantity in paired contracts: Settlement amount ranges from ₹1,00,000 to ₹5,00,000.
- Based on trade value in paired contracts: Minimum penalty of ₹5,00,000, calculated at 1 basis point of traded value.
- The final settlement amount will be consolidated.
3. Non-Monetary Terms:
- Voluntary debarment of up to six months, with credit for any prior debarment served.
4. Exclusions:
- Brokers against whom a charge sheet has been filed by the Economic Offences Wing, Enforcement Directorate, or other law enforcement agencies.
- Brokers who have defaulted at stock exchanges.
- Any future charge sheet will render the settlement void.
This scheme offers a structured and time-bound resolution mechanism for eligible brokers, reinforcing SEBI’s commitment to regulatory clarity and market integrity.