National Bulk Handling Corporation, part of the Financial Technologies Group, has clarified that banks have conducted audits on its warehouse to authenticate the stock it holds on behalf of the banks.

In the light of the NSEL development, the corporation said most of the banks have conducted audits of their stocks in NBHC’s warehouses and no deviations have been found.

The development was triggered by the Rs 5,600-crore settlement crisis at National Spot Exchange, also a part of the Financial Technologies Group. This is the second time the Corporation has made a statement to distance itself from the NSEL crisis. “We do not handle NSEL warehouses. Clients are welcome to visit the warehouses to check their stocks, to quell any fears whatsoever,” it said in a press statement issued on Thursday. NBHC managed stocks at five warehouses of pre-stored commodities for NSEL during June-July and no warehouse receipts were issued against this stock, it said.

The assignment was just to manage the warehouses. It has been handed over to NSEL along with the balance stocks last month. As of date, NBHC carries stocks worth Rs 65 lakh on behalf of NSEL, it said.

As a collateral manager, the Corporation handles commodities pledged with the banks. It gives guarantee to banks on the quantity and quality of goods stored in its warehouse.

It holds stocks in the names of the respective depositors. In case the depositors want the stock to be financed by a bank, a lien is marked in favour of the said bank. Under no circumstances, it said, the same stock lien is marked in favour of more than one bank.

>suresh.iyengar@thehindu.co.in

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