Corp affairs ministry probe widens into NSEL associates

Sep 28 2013, 04:18 IST
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SummaryThe corporate affairs ministry has widened its scope of probe in the NSEL case.

The corporate affairs ministry has widened its scope of probe in the NSEL case. Apart from seeking account details of Financial Technologies-promoted National Spot Exchange Ltd (NSEL) from Registrar of Companies (RoC) Mumbai, the ministry has also sought financial reports and other details from the FTIL Group and other related entities.

NSEL is already being probed by various other regulators and investigative agencies with regard to a Rs 5,600-crore payment default and persistent violations of various regulations.

“As far as ministry of corporate affairs is concerned, we will look at all companies and all entities in question and we have asked for reports from the registrar of companies for all the numbers, figures, balance sheets, financial statements and to see if there has been any company law violations,” Sachin Pilot, corporate affairs minister, told reporters here. “As soon as we get reports from RoC on all the companies that are under question, we will take action,” he added.

On Thursday, finance minister P Chidambaram had said that NSEL was violating rules from the day one and the matter was being looked into by MCA, CBI and commodity markets regulator FMC.

Meanwhile, accounting regulator Institute of Chartered Accountants of India (ICAI) in a press conference said that it has referred to the disciplinary committee the matter involving auditors of NSEL following a formal complaint against the exchange. As such, it has sought details related to FTIL, after the firm’s auditor withdrew the audit reports this week.

“We have referred the matter (of NSEL auditor) to the disciplinary committee. A complaint in the NSEL has been filed and an enquiry has been initiated,” Subodh Kumar Agrawal, president, ICAI, said.

However, he did not reveal the name of the complainant. The audited accounts were withdrawn a day before FTIL’s annual shareholder meeting on September 25.

NSEL investors move HC for recovery

Mumbai: After waiting for almost two months, National Spot Exchange Ltd (NSEL) investors moved the Bombay High Court for recovery of their money on Friday.

“We have filed a writ petition in the high court for a suitable direction to investigation agencies. We want a thorough investigation and the money should be recovered,” said Sharad Saraf, president of the NSEL Investors Forum. This is the first time investors are moving the court. The petition is expected to come up for hearing next week.

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