Clarifying on the Securities and Exchange Board of India (Sebi) declaring the commodity arm of IIFL as 'not fit and proper', Nirmal Jain, founder and chairman, IIFL Group on Monday said that the order was restricted to India Infoline Commodities Ltd (IICL) and other businesses have nothing to do with it.

The market regulator, on Saturday, declared the commodity arms of IIFL and Motilal Oswal as 'not fit and proper' as part of action being taken in the National Spot Exchange Ltd (NSEL) case, under which the brokers allegedly violated rules to defraud investors.

Discussing the same with CNBC-TV18, Jain said Sebi has taken cognizance of all the factual data presented by them and the order, in fact, has put an end to uncertainty with respect to developments over the NSEL issue.

Further, he said the only accusation is that "we provided a platform as a broker to trade on those paired contracts or NSEL contracts".

"That is the primary or probably the only reason India Infoline Commodities Limited (IICL) is considered not fit and proper. The order restricts itself to IICL and rejects the application of IICL," he said.

At a group level, the commodity business contributes less than 0.2 percent to profits and everything else remains ring-fenced, said Jain, repeating that the order is specific to IICL and not to another entity.

He also clarified that in the Sebi order, there is no reference to unlawful gains.