Government panel finds 'minor systemic failure' at NSEL

Business

oi-Staff

By Super

Published: Saturday, September 21, 2013, 9:51 [IST]

NEW DELHI: The high-level panel, headed by Economic Affairs Secretary Arvind Mayaram, has found "minor systemic" failure at the National Spot Exchange Ltd that is grappling with Rs 5,500 crore payment crisis.

The final report is likely to be submitted to Finance Minister P Chidambaram tomorrow, a senior Ministry official said today.

"We have found minor systematic failure and the report will be submitted to the Finance Minister tomorrow," the official said, without elaborating further.

Secretaries from the Corporate Affairs and the Consumer Affairs Ministries, the Revenue Department, and head of Enforcement Directorate, are part of the committee.

The government had also set up two working groups under this panel, comprising representatives from the Sebi, the RBI, the FMC, the Enforcement Directorate, the Income Tax Department, the Finance Ministry, the Corporate Affairs Ministry and the Consumer Affairs Ministry, among others.

In the wake of the NSEL crisis, sources had said the government might consider streamlining the norms for commodities and capital markets, regulated by FMC and Sebi, respectively, to plug potential regulatory gaps.

The idea is to make the regulations governing commodity derivatives markets much more stringent and bring them at par with the norms applicable for Sebi-regulated capital markets, they had said.

NSEL, part of Jignesh Shah-led Financial Technologies group, is grappling with a payment crisis for settling dues worth Rs 5,500-crore and had to suspend trading activities on July 31 after a government directive.

PTI