The National Spot Exchange board on Tuesday sacked its managing director and CEO Anjani Sinha and six senior officials pending an enquiry. The development comes on a day the bourse could manage to pay just over a half of the Rs 174.72 crore due to investors. Meanwhile, the government is contemplating a move to supercede the NSEL board.
A government source close to the development told The Indian Express that the a couple of ministries were discussing the matter.
“The corporate affairs ministry has suggested to take steps to give confidence to the investors in the spot exchange and to supercede the board of NSEL, including promoters,” said the source, adding that the ministry had asked the consumer affairs ministry to suggest if such a step was feasible.
This could be the second such case where the government will appoint a committee to supercede the board of a company.
In 2009, the government had nominated a three-member committee — Deepak Parekh, Kiran Karnik and C Achuthan — to the board of Satyam Computer Services after its chairman B Ramalinga Raju confessed to accounting fraud.
NSEL has to settle Rs 5,400 crore of dues to investors. The bourse on Tuesday could settle only Rs 92.12 crore out of the Rs 174.72 crore payment it had committed to the Forward Markets Commission (FMC).
NSEL has said that Anjani Sinha will continue to assist in the recovery process as a Special Officer.
“The board decided that the current key management team headed by Anjani Sinha, MD & CEO, and other relevant heads of departments be removed from their current assignments, pending an enquiry,” NSEL said.
The NSEL board has appointed PR Ramesh as the Officer on Special Duty to exercise all powers of a CEO of the company and will report to the board directly.
The exchange has also appointed SGS India, part of Switzerland’s SGS Group Management, to audit 21 commodities across 89 NSEL warehouses.
“We expect this work to be over by end of the month. The exchange will take necessary legal and regulatory measures in case of any non-compliance with the collaterals lying in various warehouses,” NSEL said.