NSEL crisis reports set to be unveiled Monday by high-powered panel

Sep 02 2013, 20:38 IST
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"The two groups would meet DEA Secretary tomorrow and submit the reports," an official said adding they would be considered by the Finance Ministry. AP
SummaryNSEL is facing problem of settling Rs 5,600 cr dues to 13,000 investor clients.

The two working groups set up to look into violations by National Spot Exchange Ltd (NSEL) are likely to submit their reports to the Department of Economic Affairs Secretary Arvind Mayaram tomorrow.

"The two groups would meet DEA Secretary tomorrow and submit the reports," an official said adding they would be considered by the Finance Ministry.

NSEL, promoted by Jignesh Shah-led Financial Technologies India Ltd (FTIL), 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.

Ex-MP Kirit Somaiya files PIL, asks NSEL to pay Rs 8k cr

The Prime Minister's Office (PMO) had last month suggested setting up of a special team with Department of Economic Affairs (DEA) at its lead.

The special team working on NSEL case will be supported by the two working groups headed by Director, Enforcement Directorate (ED) and Deputy Governor RBI, respectively, that have prepared 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.

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