The two working groups looking into possible violation of provisions in the National Spot Exchange Ltd (NSEL) issue will submit their reports on September 12.

One of the working groups is headed by the Director of Enforcement Directorate (ED), while the other is headed by a Deputy Governor of the Reserve Bank of India.

Once these reports are submitted, a special team headed by Department of Economic Affairs Secretary Arvind Mayaram will look into the matter. The special team, set up on a suggestion made by the Prime Minister’s Office, held its first meeting on Tuesday.

NSEL is facing the problem of settling Rs 5,600 crore dues to 148 members/brokers, representing 13,000 investor clients, after it suspended trade on July 31 on Government direction.

The special team will also suggest measures to be taken to check any systemic fall-out of the NSEL crisis on the financial system. The team includes the secretaries of Company Affairs, Consumer Affairs and Revenue.

The group headed by the ED official has looked into the violation of laws and regulations by NSEL, its associated companies and participants.

It includes representatives from Directorate of Revenue Intelligence, Securities Exchange Board of India, RBI, Forward Markets Commission, Serious Frauds Investigation Office, Department of Consumer Affairs and a representative of the directorate of investigation, Central Board of Direct Taxes.

The second group, headed by a Deputy Governor of RBI, has examined ways to prevent any systemic impact of NSEL developments. It includes the FMC Chairman, a SEBI member, and advisor (FSDC) Department of Economic Affairs.

shishir.s@thehindu.co.in

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