Despite being aware of the several lapses at the National Spot Exchange (NSEL), the capital markets watchdog, Securities and Exchange Board of India (Sebi), could not intervene in the matter as the commodity spot market did not come under its jurisdiction, the regulator clarified in a letter to NSEL investors.
The market regulator specified its role and restrictions in response to complaints registered by NSEL investors on the Prime Minister's Office (PMO) portal. Sebi in a letter to NSEL investors dated June 14, said: “Investor grievances pertaining to the NSEL matter are beyond (our) regulatory domain.”

Source - http://www.business-standard.com