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CBI, others to take action against NSEL: Chidambaram

HT Correspondent , Hindustan Times  New Delhi, September 27, 2013
First Published: 00:08 IST(27/9/2013) | Last Updated: 03:29 IST(27/9/2013)

The Central Bureau of Investigation (CBI) along with the Ministry of Corporate Affairs (MCA) and commodities regulator Forward Markets Commission (FMC) will look into the irregularities at the National Spot Exchange Ltd (NSEL) and decide on the future of action, said P Chidambaram, finance minister, on Thursday.


He also said that NSEL, a part of Jignesh Shah-promoted Financial Technologies Group, was not a registered or a recognised body.

A panel, headed byArvind Mayaram, secretary, department of economic affairs, which was formed to look into the irregularities and functioning of the commodity exchange grappling with a Rs. 5,600-crore payment crisis, submitted its report to the finance minister on Monday.

"The Mayaram panel report has suggested that CBI, FMC and MCA must take appropriate action... they have listed out the irregularities...These authorities are looking into the matter and the they will take action," he added.

The finance minister also said that the exchange has been violating the very conditions under which they claimed they could do business.

"I think there is much more to the way NSEL started business than meets the eye as people seem to have given money to NSEL promoters with open eyes... it is not a regulated entity and has been violating conditions from day one."

Two other trading platforms —the Multi Commodity Exchange of India Ltd and MCX Stock Exchange Ltd are also promoted by Financial Technologies (India) Ltd.

Asked whether whether the government could look at changing the management of other bodies, which are driven by the the same promoters, Chidambaram said the government would first wait for the report of the regulators.

"Let FMC give its report…I think the FMC report will be ready in a day or two...We will see the report first."

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