The document discusses the investigation and arrest of three commodity brokers - Amit Rathi of Anand Rathi Commodities, Cherassary Krishnan of Geofin Comtrade, and Chintan Modi of India Infoline Commodities - by the Economic Offences Wing of Mumbai police for their alleged involvement in the National Spot Exchange Limited payment default case. The brokers are accused of giving false information to investors and auditors, trading without client consent, and manipulating trading volumes. The EOW probe revealed evidence that Amit Rathi was aware and actively involved in the suspicious activities through his company.

2.  INTRO TO INDICTED BROKERS
 ALLEGATIONS AGAINST BROKERS
INVESTIGATION AGENCIES PROBES
 MPID COURT JURISDICTION
 VERDICT

3.  Anand Rathi Commtrade Ltd., founded in 1994 by Mr. Anand
Rathi, today has a pan India presence across 750 locations.
 Geofin offers trading services in Commodities Futures. It is
managed by a group of professionals having considerable years of
experience and expertise in Commodities, ever since the
reintroduction of Commodities Futures in india in 2003.
 IFL Holdings Limited (formerly known as India Infoline Limited) is
the apex holding company of the entire IIFL Group, which is a
leading financial services company in India.

4.  On 3rd March 2015, The EOW Mumbai arrested Amit Rathi, Director of
Anand Rathi Commodities Limited (ARCL)
 Cherassary Krishnan, Director of Geofin Comtrade.
 Chintan Modi, Director of India Infoline Commodities.

5.  EOW investigations reveal that the three brokers, who
were arrested on March 3, had allegedly given false
information to investors and auditors of NSEL.
 Brokers allegedly traded in their clients names without
their consent.
 These 3 Top Brokers had manipulated the trading
volumes of NSEL.

6.  ARCL started trading on the NSEL platform in 2009, and
presently has 12,900 clients.
 In the past four years, ARCL traded worth Rs19,130.2 crores,
which is around 16% of the overall turnout on the NSEL
platform.
 ARCL had falsely assured investors that they (ARCL) had done
the due diligence, and there were enough settlement
guarantee funds, thus enticing them to invest in NSEL
products.
TO BE CONTD……

7.  ARCL also acted as a clearing and forwarding agents, and
gave NSEL auditors deceitful information that there were
adequate goods in the warehouses.
 The EOW investigators also believe that ARCL
masqueraded as its client to do large deals (Also known as
UCC manipulation).
 We have come to know that UCC manipulation
(masquerading) was done rampantly from two conduit
accounts without the consent of the account holder and
commodities were bought without the consent of the
clients, leading to unfair trade practices

8.  A special court on Friday extended the police custody of
Amit Rathi, director of Anand Rathi Commodities Ltd
(ARCL)
 Amit Rathi was sent to the extended custody, Rathi’s bail
application will be heard on March 20.
 The court noted that Rathi was an authorised signatory to
the bank accounts of ARCL.
 Amit Rathi actively participated in board meetings, based
on documents provided by the Mumbai police’s Economic
Offences Wing

9.  As per media reports & Investigating Agencies it is
clear that Amit Rathi was fully aware of the
notorious act which was played under his nose and
it sounds very unpleasant that Amit Rathi couldn’t
whiff this.
 Granting bail to Amit Rathi will not only adversely
affect investors, but it will promote this unethical
trade practices in the future.