Synopsis

Markets regulator Sebi on Wednesday said a settlement scheme for stock brokers, who traded on the now-defunct National Spot Exchange Ltd (NSEL) platform, will open on August 25.

Markets regulator Sebi on Wednesday said a settlement scheme for stock brokers, who traded on the now-defunct National Spot Exchange Ltd (NSEL) platform, will open on August 25.

The settlement scheme would conclude on February 25, 2026, the Securities and Exchange Board of India (Sebi) said in a statement.

The scheme aims to provide a settlement opportunity to stock brokers against whom Sebi has already passed orders for trading or facilitating trading on the NSEL platform and are currently pending before any authority or forum like the Adjudicating Officer, Securities Appellate Tribunal, or the courts.

"This scheme is for settling only the violations relating to the securities laws without any bearing on the matters, which are being investigated by other law enforcement agencies, falling under their jurisdictions," the regulator said.

By opting for the scheme, these brokers will have an opportunity to resolve pending proceedings and bring them to an expedited conclusion.

However, Sebi has specified that the scheme excludes brokers -- specifically, those named in chargesheets filed by the Economic Offences Wing, Enforcement Directorate, or other law enforcement agencies in the NSEL matter, as well as those declared defaulters at stock exchanges.

To assist stakeholders, Sebi said that the frequently asked questions (FAQs) related to the NSEL settlement scheme will be available on its website from August 25, 2025.

The NSEL case pertains to a payment default at the commodity exchange platform that occurred in 2013. The massive payment defaults affected approximately 13,000 traders.

Last month, the board of Sebi approved a proposal regarding the settlement scheme for brokers of NSEL.

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