MCX Board to take action on PwC's report

Apr 26 2014, 21:50 IST
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The regulator had approved the name of PwC as suggested by the audit committee of the exchange's board to the FMC. The regulator had approved the name of PwC as suggested by the audit committee of the exchange's board to the FMC.
SummaryMCX Board to take action on 'adverse findings' in audit by PwC.

The MCX Board today decided to take action on "adverse findings" of PricewaterhouseCoopers' special audit report on corporate governance issues at the commodity exchange.

"The Board considered the PwC's special audit report. We have decided to take all necessary actions required. The actions will depend on the adverse findings of the report," MCX Chairman Satyananda Mishra told PTI after the meeting.

The issue of sharing of critical information with potential bidders for promoter FTIL's stake in the bourse did not come up for discussion, he said.

The board also did not deliberate on seeking extension of April 30 deadline of set by regulator FMC to ensure FTIL's stake in MCX is reduced to 2 per cent from the existing 26 per cent in line with regulatory norms, Mishra said, adding that these were not on the agenda of the Board meeting.

In the wake of Rs 5,600-crore payment crisis at NSEL, commodity markets regulator FMC in December, 2013 had appointed PwC to audit books of MCX to examine if NSEL arm Indian Bullion Markets Association and FTIL's subsidiary National Bulk Handling Corporation (NBHC) traded on MCX.

The regulator had approved the name of PwC as suggested by the audit committee of the exchange's board to the FMC.

Both National Spot Exchange Ltd (NSEL) and MCX are promoted by Jignesh-Shah-led Financial Technologies India Ltd.

Following the huge payment scam at its subsidiary NSEL, the Forward Markets Commission (FMC) had ruled that FTIL was not 'fit and proper' to hold more than 2 per cent stake in MCX.

Yesterday, FTIL could not finalise the bidders to sell its stake in MCX as buyers sought more time to submit binding offers on the grounds that the bourse is not providing critical information to them. Bidders also sought more time to know the outcome of the MCX Board on PwC's audit report.

FTIL had said it had asked MCX to cooperate with bidders in providing key information and enable the stake sale process completes at the earliest.

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