Tax notice sent to Trading Clients ofn NSEL case

In 2013 when National Spot Exchange came into light for the crisis there were 13K trading clients who lost their money. Few days back Income Tax Department had sent tax notices to some of the trading clients and entities involved in the National Spot Exchange Limited (NSEL) crisis. Since then the case is being investigated by several agencies. Exchange was forced to suspend all its trading contracts.  After the payment crisis Regulatory Body, Investigating Agencies and NSEL had declared 24 members as NSEL Defaulters.

The trading clients and entities who lent them finance to trade on the currently invalid NSEL received notices from tax authorities. 13000 trading clients lost their money. Some to these trading clients have received notices from the income tax department. Income tax department has issued notice seeking details, other than source of funds, investment made in NSEL and bad debt claimed during assessment year 2014-15 and 2015-16. The trading clients are upset over the notices and are considering same as troubling.

Securities and Exchange Board of India (SEBI), Enforcement Directorate (ED), and Economic Offences Wing (EOW) are investigating the matters of NSEL with several other agencies. Leading Broking Firms are investigated by these agencies. They are also interrogating some of the top officials of these broking firms. Brokers, trading clients and entities everyone’s role needs to be probed to carry out an investigation in the NSEL case. Government is also investigating NSEL crisis case in detail and role of everyone involved.