The Forward Markets Commission (FMC), on Thursday, barred the National Spot Exchange (NSEL) and group firms from auctions of commodities held by the bourse after a complaint that firms related to the former Managing Director took part in the bidding process.
A five-member panel will now oversee the auctions at NSEL, the FMC said in a directive to the crisis-hit exchange. NSEL is selling commodities to clear Rs.5,600 crore of dues to 13,000 investors.
“With reference to the recent auction of castor seeds and sugar conducted by NSEL, the Commission has received a complaint that in the auction-cum-bidding process, some companies related to ex-D and CEO of NSEL have also participated,” the FMC said.
“This raises a serious concern on the auction-um-idding process carried out by NSEL,” it said.
Former NSEL CEO and Managing Director Anjani Sinha, who was sacked on August 20, blamed the entire former senior management, including himself, for the payment crisis that engulfed the bourse, according to an affidavit filed before a local court in Mumbai.
The FMC order said none of the group entities and associate concerns of NSEL and its promoter Financial Technologies or any related entity should participate in the bidding process. It said the committee had been set up to bring greater transparency and credibility to the auctions.