CBI likely to ask for licensing records of NSEL from states

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The CBI is likely to seek from state governments records pertaining to licences given to the NSEL as part of its inquiry focussing on the norms allegedly violated by the bourse. The CBI is likely to seek from state governments records pertaining to licences given to the NSEL as part of its inquiry focussing on the norms allegedly violated by the bourse.
SummaryThe sources alleged there were a number of violations by NSEL.

The CBI is likely to seek from state governments records pertaining to licences given to the National Spot Exchange (NSEL) as part of its inquiry focussing on the norms allegedly violated by the bourse.

Sources said licensing issues of the NSEL have come under the scanner of the CBI, which is carrying out an inquiry into alleged violations by the bourse facing multiple probes into financial irregularities. They said records will be called from the state governments as they gave licence to NSEL to operate in a particular state.

The sources alleged there were a number of violations by NSEL, which are being looked into by CBI and if any evidence is detected during the inquiry, the agency may file an FIR.

The agency was contemplating to close the inquiry because of an ongoing probe by the Economic Offences Wing of the Mumbai Police but during the course of its investigation, it found some leads, which prompted it to dig deeper into the licensing issue, they said.

Moreover, the issues which are under the probe of EOW of the Mumbai Police and CBI are completely different, they said.

The sources said the inquiry is still at a preliminary stage and CBI is trying to unravel all the angles of a potential conspiracy.

The exchange has been facing problems in settling R5,600 crore dues of 148 members and brokers, representing 13,000 investor-clients, after it suspended trade on July 31, last year on the government’s direction.

Finance minister P Chidambaram had said NSEL had violated rules from day one and the matter was being looked into by the ministry, CBI and Forward Markets Commission, the commodity markets regulator, among others.

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