The verification did not reveal any discrepancy in the quantum of stock. The physical stock at locations was reconciled and matched with the stock statements and depository records, said the verification note by audit firm Sharp & Tannan Associates uploaded by the exchange on its website.
The audit concluded that warehouses at the Delhi and Ludhiana locations collectively hold 62,114 kg of copper, 60,941 kg of zinc, 49,618 kg of lead and 17,334 kg of nickle.
As per the audit note, the stock verification was carried out between August 31, 2013, and September 2, 2013. The physical quantity with related lot number and weight was cross checked with the stock statement and purchase invoices, wherever available.The physical stock was further cross checked with the NSEL stock register maintained by the warehouse operators. The stock quantities were further checked with the demat statement of National Securities Depository (NSDL) and Central Securities Depository (CSDL).
However, it also acknowledged that the report is intended solely for the information and use of the exchange. Others may rely on this information at their sole discretion and judgement, added the verification note.
Last week, NSEL not only confirmeda settlement backlog on e-series positions due to redemption pressure but also said that it planned to open a special exit window for investors seeking cash settlements.
In order to facilitate the investors to liquidate the e-series units, NSEL is in the process of providing an exit window to sell their units and realise cash payments, subject to necessary approvals, the release said.
Brokers said that while taking delivery turns out to be a costly affair for all e-series products, it makes sense to settle the positions in cash especially for the base metals. Unlike gold and silver where investors may be satisfied with physical settlement, it is not practical to take physical delivery of base metals and hence proportionate cash settlement is more acceptable, said a broker.