The Forward Markets Commission, the commodity futures market regulator, has asked Grant Thornton to carry out a forensic audit on Multi Commodity Exchange (MCX).
Grant Thornton, a professional services firm, has been tasked to examine trading done on MCX, the largest commodity exchange in the country, by entities related to promoters or any group companies, Finance Ministry sources said.
Indications are that the forensic audit will commence from the first week of November.
This move by the Commission is another affirmation that investigating authorities have widened their existing probe on the crisis-ridden National Spot Exchange Ltd to other bourses promoted by the holding company – Financial Technologies (India) Ltd.
One of the objectives of a forensic audit is to examine whether any fraud has taken place. It is also used to find whether or not true business value is reflected in the financial statements.
The commodity futures regulator is now under the purview of the Finance Ministry.Grant Thornton had earlier come out with their forensic audit report on crisis-ridden NSEL.
The latest mandate for Grant Thornton could lead to examination of the trading data of Indian Bullion Markets Association, a Financial Technologies’ Group firm, on MCX.
The association trading on the National Spot Exchange is seen as a violation by FMC.
The spot exchange is 99.99 per cent owned by Financial Technologies. It has over 60.88 per cent stake in the bullion association. Financial Technologies owns 26 per cent in MCX.
The FMC, which had taken steps to ring-fence MCX from the Rs 5,600-crore settlement crisis at NSEL, has now rejigged the entire MCX board. It had cleared the appointment of four independent directors.
The commission’s decision to appoint Grant Thornton to undertake forensic audit of MCX comes on the heels of the resignation of the bourse’s Chief Executive and Managing Director Shreekant Javalgekar.
srivats.kr@thehindu.co.in