No discrepancy in bullion stock kept at BAIPL by NSEL: Report

Written by PTI | New Delhi | Updated: Sep 6 2013, 03:24am hrs
There is no discrepancy in the quantum of bullion stock stored by the crisis-hit NSEL at the designated delivery centre Brinks Arya India Pvt Ltd (BAIPL), an audit conducted by a chartered accountant firm said today.

Mumbai-based CA firm Sharp and Tannan Associates was asked by the National Spot Exchange Ltd (NSEL) to conduct physical verification of stocks of gold, silver and platinum lying with BAIPL, an arm of Brink's Global Services.

"The verification did not reveal any discrepancy in quantum of stocks. The physical stock at locations was reconciled and matched with the stock statements and depository records," said the audit report of the CA firm.

The verification was undertaken from August 26 to August 31, 2013 at BAIPL's vaults situated at Mumbai, Kolkata, New Delhi, Hyderabad, Ahmedabad and Jaipur, it said.

The report said it verified the stock of 910.65 kg of gold, 46,167.7 kg of silver and 19 kg of platinum lying at six locations. It checked weight and purity of the precious metal.

NSEL had deposited with BAIPL the bullion stock that was traded via E-series contracts on its exchange platform.

The beleaguered NSEL has already defaulted in the first three pay-outs as it received only Rs 92.73 crore from members in the first pay-out, Rs 12.05 crore in the second pay-out, and Rs 15.37 crore in the third pay-out, out of the scheduled Rs 174.72 crore each.

NSEL, promoted by Jignesh Shah-led FTIL, is facing the problem of settling Rs 5,600 crore dues to 148 members after it suspended trade on July 31 as per government direction.

Meanwhile hearing a petition filed by Indian Council of Investors seeking direction to NSEL that it should safeguard the rights of the investors, the Bombay High Court today directed the exchange, government and other respondents to file affidavits-in-reply within four weeks.

Separately, two working groups -- set up to look into violations by NSEL in the payment crisis on the commodity exchange -- are likely to submit their reports to the Department of Economic Affairs by September 12.