Corp Affairs Ministry examining whether NSEL violated laws

Business

oi-Staff

By Super

Published: Tuesday, September 17, 2013, 9:48 [IST]

Corporate Affairs Ministry is looking into whether the crisis-ridden National Spot Exchange violated company laws and would take action against the exchange if any wrongdoing is detected.

"The two panels appointed by the finance ministry to probe NSEL crisis have submitted their reports to finance secretary Arvind Mayaram and we are now looking into whether NSEL violated company laws and take action against the exchange," the Corporate Affairs Minister Sachin Pilot said. The minister was speaking on the sidelines of a national conference on the Companies Act, 2013 organised by CII.

NSEL is presently facing a crisis of settling Rs 5,500 crore dues to 148 members/brokers, representing 13,000 investor clients, after its trade was suspended on July 31 by government orders.

Pilot said many departments are looking into the NSEL issue, "both in terms of overall structure of (forwards market) segment.""Our aim is to protect the investors, depositors so that they do not lose money," he said.

Commenting on the Companies Bill 2013, Pilot said, "The Bill will encourage self disclosure and self reporting. The ease of doing business will certainly help create a better environment. It will give more confidence to the investor community, both in India and abroad."

Putting to rest industry's concerns on the applicability of overlapping provisions of the Companies Act, 1956 and the Companies Act, 2013 - of which 98 sections were notified on 12 September, Pilot said that his Ministry would issue a clarification soon to the effect that corresponding provisions of the earlier Act have been superseded by the new Act.

PTI