NSEL crisis: Sub-groups to submit reports to DEA by Sept 12

Written by Press Trust of India | New Delhi | Updated: Sep 4 2013, 02:53am hrs
New Delhi
The 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.

"The two groups will submit their reports by September 12," DEA Secretary Arvind Mayaram told reporters here after a meeting that was held to discuss the crisis.

The meeting was also attended by RBI Deputy Governor K C Chakrabarty, Revenue Secretary Sumit Bose as well as officials from Enforcement Directorate (ED), Consumers Affairs Ministry and Corporate Affairs Ministry.

The National Spot Exchange Ltd, promoted by Jignesh Shah- led Financial Technologies (India) Ltd, is facing the problem of settling Rs 5,600 crore dues to 148 members/brokers, representing 13,000 investor clients, after it suspended trade on July 31 on the government direction.

The Prime Minister's Office (PMO) had last month suggested setting up of a special team led by DEA.

The team is supported by the two working groups headed by Director, Enforcement Directorate (ED) and Deputy Governor RBI, that are preparing the reports.

The panel, which will also suggest measures to be taken to check any systematic fallout of the NSEL crisis on the financial system, includes Company Affairs Secretary, Consumer Affairs Secretary and Revenue Secretary.

The group headed by ED official has looked into the violation of laws and regulations by NSEL, its associated companies and participants. It included representatives from Directorate of Revenue Intelligence, Sebi, RBI, FMC, SFIO, Department of Consumer Affairs and representative of Directorate of investigation CBDT.

The second group, headed by Deputy Governor of RBI, has examined ways to prevent any systemic impact of NSEL developments. It included FMC Chairman, a Sebi member, and Advisor (FSDC) Department of economic affairs.