Jignesh Shah scam: Govt looking at all options to deal with NSEL crisis, says Sachin Pilot

PTI Posted online: Friday, Dec 20, 2013 at 0000 hrs
New Delhi : Emphasising that the priority is to protect the interest of investors, Union Minister Sachin Pilot today said all options are available before the government to deal with the National Spot Exchange Ltd (NSEL) scam and its fall out.

The Corporate Affairs Minister said the Ministry is expected to receive the final report on the issue in the "next few days".

"All options are available in front of us... like in company law there are many provisions that can be invoked depending on what the (final) report says," Pilot said.

National Spot Exchange Ltd (NSEL) promoted by Jignesh Shah-led Financial Technologies India Ltd (FTIL) is grappling with Rs 5,600 crore payment crisis. The Exchange, Financial Technologies, Shah as well as some other group companies are already under the scanner of various authorities.

On the NSEL crisis, Pilot said his ministry is also looking at "fit and proper aspects" of certain entities, adding the government has already taken "enough steps" in this regard.

On Wednesday, the Forward Markets Commission had said that Shah and Financial Technologies are not "fit and proper" to run any exchange in the country besides charging him with being the "highest beneficiary" in the NSEL scam.

The Registrar of Companies (RoC), Mumbai, had recently submitted its interim report to the ministry. The report had found that NSEL and its Board had not only violated multiple regulations but did not take action against repeated defaults which resulted in the payment crisis at the bourse.

"My intent is to make sure that we have a regulatory framework where interest of investors are protected and those things are not repeated," Pilot said.

He was speaking on the sidelines of CII-ITC Sustainability awards function.