Commodity markets regulator Forward Markets Commission (FMC) has asked crisis-ridden National Spot Exchange Ltd. (NSEL) to go ahead for the time being with its plan to settle Rs.5,600 crore of dues to investors and questioned the credibility of the accounts and information provided by the exchange. On August 14, the NSEL had submitted the plan to the FMC to clear dues to 13,000 investors over a period of seven months.The FMC came down heavily on the NSEL for not taking guarantees for the financial settlement and providing different sets of information at different times.
“The credibility of information given and the books of account/records maintained by NSEL have raised serious doubt on its authenticity. You (NSEL) are, therefore, directed to appoint a forensic auditor firm to establish the credibility of books of account, record maintenance by the exchange in next seven days,” the regulator said in a letter to the NSEL.
The NSEL has also been asked to update the amount deposited in the escrow account on a daily basis to the regulator and on its official website. FMC said the settlement plan submitted by NSEL to the regulator was different from a payment schedule announced in a press release on August 4 and this “has raised serious doubts on credibility of the commitments made by buyers.”
ADVERTISEMENT
The regulator also directed the exchange to submit the list of members who failed to meet their pay-in obligations and the reasons for not initiating default proceedings against such members, if any.