The government has formed a special team, led by economic affairs secretary Arvind Mayaram, to look into the settlement crisis at the National Spot Exchange Ltd (NSEL).
?With a view to examining any violations of laws and regulations by the NSEL and to suggest measures to ensure that there is no systemic impact of the developments in NSEL, it has been decided to constitute a special team under the secretary of the economic affairs, secretary of corporate affairs, secretary of consumer affairs and secretary of revenue,? said an office memorandum by the ministry of finance.
The special team will be supported by two working groups: the first one headed by the director of the enforcement directorate and the second by a deputy governor of the Reserve Bank Of India (RBI). Apart from the chairman, the first working group will comprise one representative each of the directorate of revenue intelligence, Sebi, RBI, department of consumer affairs, Forward Markets Commission (FMC), Serious Fraud Investigation Office of the ministry of corporate affairs and the directorate of investigations of the Central Board of Direct Taxes.
The second working group will consist of the chairman of the FMC, member of Sebi and advisor to the department of economic affairs, apart from the deputy governor of the RBI.
While the first working group will ?examine the violations, if any, of any laws and regulations by NSEL/any associated companies/any of the participants of NSEL?, the second group will “examine and suggest measures that could be taken to ensure that there is no systemic impact of the NSEL development”.
Both the working groups are directed to complete their task within two weeks ? by September 7 ? and submit a report to the special team headed by Mayaram ?for further consideration and finalisation of the report for submission to the government.?
Asked about the defaults at NSEL, consumer affairs minister KV Thomas said the government will try to ensure that investors’ interests are protected .
