Former NSEL CEO held in Mumbai for fictitious trading

New delhi: The Economic Offences Wing team of Delhi Police arrested former CEO of National Spot Exchange Ltd (NSEL), Anjani Sinha in Mumbai for fictitious trading on the exchange, creating false stocks. Police said that the exchange involved Rs 5,600 crore payment default and trading fictitious commodities.

As per the official, the present case was registered on the complaint of one Ashvin J Shah. Complaints of one Jatinder Kumar Ahuja and one Sayed Habib-Ur-Rehman have also been received and clubbed into the investigation of this case. Complainants alleged that the brokerage firm Integrated Commodity Trades Pvt. Ltd, through its directors, has cheated them by inducement and misrepresentation regarding commodity trading on the platform

of NSEL.

The complainants have alleged that they were induced by the directors of the above-mentioned company to invest in commodity market which is undertaken by them as trading and clearing member of NSEL, presenting it to be completely safe, as being regulated by the government authorities.

"Being the member of the exchange, the alleged broker was to ensure that at the time of issuing the delivery order, the seller of the commodity satisfies the clearing member that he owns and holds adequate stocks of the required commodity," the official said.

Joint Commissioner of Police (EOW) OP Mishra said the trading cum clearing member has to ensure that the commodities purchased by the clients, investors through contracts were delivered to the NSEL certified warehouses. The warehouse receipts were to be delivered by the member to its clients at the time of the settlement of the contracts.

The alleged broker in collusion and conspiracy with the NSEL and the sellers did not collect the delivery orders and the warehouse receipts whereas the transactions were done on behalf of the complainants.