Millennium Post
Business

Govt mulling conduct of NSEL stocks audit

The government is mulling conducting audit of NSEL's physical stocks lying in warehouses by own agencies as it fears defaults in payment by buyers, a top Consumer Affairs Ministry official said on Monday. Consumer Affairs Secretary Pankaj Agarwal also asked the National Spot Exchange Limited (NSEL) to be a responsible guarantor to the Rs 5,600-crore dues of investors and meet its commitments.

Last week, the NSEL had announced its seven-month plan to settle the dues to investors. As per the plan, 16 August was the first 'pay-in' day and August 20 the first 'pay-out' day.
There are 24 companies which have to pay around Rs 5,600 crore to the spot exchange for settling dues to investors.

'Friday (August 16) was the first day of payment and there might have been defaulters. We have asked NSEL to declare the list of defaulters and action taken against them as per their own bye-laws,' Agarwal told reporters here.

The ministry is contemplating getting the NSEL stocks lying in warehouses audited by government agencies, he added.
'NSEL being a guarantor has been told to behave like a guarantor and that the exchange must meet the commitments,' Agarwal said.
NSEL, promoted by Jignesh Shah-headed Financial Technologies India Ltd (FTIL), is engulfed in a crisis after it suspended trade on 31 July following government directives.
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