SEBI to track down real culprits in NSEL case |
Posted: May 25, 2016 |
“Besides the Corporate Affairs Ministry, the Economic Offences Wing (EOW) of Mumbai Police and the Directorate of Enforcement are also investigating the NSEL crisis matter,” ArunJaitley, Corporate Affairs Minister, shared in a written reply to a Lok Sabha question. In his reply, Jaitley also said that a total of 50,389 representations (physical Papers as well as emails) were received during March 2015 to October 2015 in response to the public notice issued by the Corporate Affairs Ministry on the draft merger order. On the case for quite some time now, SEBI has begun auditing five brokers who were mentioned in the March 31 interim order of Bombay High Court Committee on NSEL, after also becoming the regulator of commodity markets. The five brokers under the scanner areAnandRathi Commodities, India Infoline Commodities, GeofinCommtrade, Phillip Commodities and MotilalOswal Commodities. In the interim order, the Bombay High Court appointed committee had highlighted discrepancies of the brokers in NSEL case. Jaitley also mentioned in his written reply that representations had been received asking for quick action against the people really responsible for the National Spot Exchange Limited (NSEL) case. He added, “Properties valued at Rs 5,757 crore of the accused have been attached by EOW while 32 common properties valued at Rs 740 crore (by ED) and Rs 1,222.89 crore (by EOW) have been attached.” "Further, directions have also been given to the SEBI to examine and take necessary action against the defaulting brokers", Jaitley said. Brokers are under the radar for major discrepancies like giving false assurances, inducement and misrepresentation by brokers, trading without appropriate authority from clients, misuse or unauthorised modification of unique client code, funding by NBFCs related to the broker and non-receipt of payouts by clients. "It has also been alleged that funds of sister concerns of brokers, which could have been derived from illegal sources, were used to trade on the NSEL platform with an intent to legitimise the said funds, which amounts to money laundering," a senior official had said. However, instead of singling out the miscreants and lawfully punishing them, the government has suggested strange ideas such as the merger of NSEL with its parent company Financial Technologies (India) Ltd (FTIL). 45,803 FTIL shareholders have opposed the merger of NSEL with FTIL who are being wrongly burdened with the sum of Rs. 5,600 crore in a clear and concerning breach of limited liability and direct violation of the Companies Act. Voices affirm that FTIL shareholders have the legal right on all the company’s profits and losses and the government should not misuse its power to go ahead with this move that won’t benefit anyone. Instead, SEBI should be given more power to successfully bring justice to this case.
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