A day after the crisis erupted at the National Spot Exchange Ltd, capital market regulator Securities and Exchange Board of India (SEBI), on Friday, said it was on ‘top of the situation’, and there was no systemic risk as settlements were happening.
NSEL, which offers an electronic platform for spot market trading in various farm commodities as also bullion contracts, on Thursday said it suspended trading in all contracts except ‘e-series’ until further notice following a government order.
“So far as the securities market is concerned, everything seems to be normal and in order. All the payouts and pay-ins are happening and there is no risk to the system,” SEBI Chairman U. K. Sinha told reporters here after delivering the Lalit Doshi memorial lecture here. “We are on top of the situation, we are reviewing it, things are perfectly normal and settlements are happening,” the Chairman further said.
Mr. Sinha further said the market regulator was coordinating with the government and commodity market regulator Forward Market Commission (FMC). Earlier in the day, the FMC Chairman Ramesh Abhishek told PTI that “The government will take all possible action to protect the interests of investors. We are awaiting information from NSEL on the rationale behind deferring the settlement of contracts.”
“The NSEL is required to submit this information by the end of the day. Once we get that, we will analyse and send the report to the Consumer Affairs Ministry for appropriate action,” he said.