A panel of secretaries, headed by Economic Affairs Secretary Arvind Mayaram, is likely to meet on September 18 to review developments at payment crisis-hit National Spot Exchange Ltd (NSEL).
“The review meeting on NSEL is scheduled for September 18 when the reports of the two working groups would be considered,” a finance ministry official said.
Officials from Ministry of Corporate Affairs and Ministry of Consumer Affairs and Revenue Department of the Finance Ministry would be attending the meeting, the official said.
The two working groups - one under the Enforcement Directorate and another under RBI Deputy Governor K C Chakrabarty - were formed last month to look into the payment crisis at the commodity exchange.
The Enforcement Directorate (ED) in its report submitted to the Finance Ministry last week has indicated that the crisis-ridden bourse may have violated money laundering laws and a few foreign exchange procedures.
The Finance Ministry and the Mayaram-headed panel would go through the contents of the report, and see whether legal action could be initiated against those involved in the operations of NSEL, sources said.
NSEL, promoted by Jignesh Shah-led Financial Technologies (India) Ltd, 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’s direction.
The Prime Minister’s Office (PMO) had last month suggested setting up of a special team led by DEA. The panels were constituted to check possible systemic fallout of the NSEL crisis on the financial system.
The group headed by ED official has looked into the violation of laws and regulations by NSEL, its associated companies and participants. It included representatives from Directorate of Revenue Intelligence, SEBI, RBI, FMC, SFIO, Department of Consumer Affairs and representative of Directorate of investigation CBDT.
The second group, headed by RBI DG, has examined ways to prevent any systemic impact of NSEL developments. It included FMC Chairman, a SEBI member, and Advisor (FSDC) Department of economic affairs.
The Income Tax department had conducted surveys on two dozen entities which were involved in the exchange last month.
The ED has prepared the report after obtaining data from the I-T department and the Forward Markets Commission (FMC) which have probed the finances of the exchange.