FMC gives time till Jan 17 for auditing NSEL's e-series contracts

FMC had appointed the Chokshi and Chokshi following an order of the Bombay High Court, which is hearing the case filed by aggrieved investors, directing the Commission to appoint a forensic auditor to examine e-series contracts executed at the troubled exchange and submit a report.

hidden December 30, 2013 15:06:13 IST
FMC gives time till Jan 17 for auditing NSEL's e-series contracts

New Delhi: Commodity market regulator FMC has given more time till January 17 to Mumbai-based chartered accountants Chokshi and Chokshi for completing the forensic audit of the crisis-hit National Spot Exchange Ltd's (NSEL) e-series contracts.

Chokshi and Chokshi, which was given December-end deadline to complete the audit of e-series contracts at NSEL, had sought extension to finish the work.

FMC gives time till Jan 17 for auditing NSELs eseries contracts

Image courtesy NSEL

"Based on your request, it is decided by the Commission to grant extension of time up to January 17, 2014 to complete the work of forensic audit of e-series contracts at NSEL," Forward Markets Commission (FMC) said in a letter to the audit firm.

FMC had appointed the Chokshi and Chokshi following an order of the Bombay High Court, which is hearing the case filed by aggrieved investors, directing the Commission to appoint a forensic auditor to examine e-series contracts executed at the troubled exchange and submit a report.

Forensic audit is an examination and evaluation of a firm's or individual's financial information for use as evidence in court.

NSEL, which is facing the problem of settling Rs 5,600 crore dues to 13,000 investors, was offering spot as well as e-series contracts which were subsequently banned by the government following violation of certain norms by the bourse.

Under e-series contracts, retail investors can buy and sell commodities in de-materialised form. This is a unique market segment, which functions like the cash segment in equities, but offers commodities in the demat form in smaller denominations.

Mumbai Police's Economic Offences Wing (EOW) has so far arrested five persons, including Anjani Sinha, former MD & CEO of NSEL, in connection with the case. Police has also seized/attached properties belonging to defaulting companies and former executives of the exchange.

PTI

Updated Date:

also read

‘Serious allegations’: SC rejects plea by Anil Deshmukh, Maharashtra govt against CBI probe
India

‘Serious allegations’: SC rejects plea by Anil Deshmukh, Maharashtra govt against CBI probe

The former home minister had challenged the Bombay HC order directing a CBI probe into allegations of corruption levelled against him by former Mumbai police commissioner Param Bir Singh

CBI questions Anil Deshmukh's personal staff in probe on corruption allegations made by Param Bir Singh
India

CBI questions Anil Deshmukh's personal staff in probe on corruption allegations made by Param Bir Singh

The ex-Maharashtra home minister's PA Kundan Shinde and personal secretary Sanjeev Palande were asked to appear before CBI in connection with its preliminary enquiry, as per the Bombay HC's order

Bombay HC asks CBI to conduct preliminary inquiry into corruption charges against Anil Deshmukh
India

Bombay HC asks CBI to conduct preliminary inquiry into corruption charges against Anil Deshmukh

The court said this was an 'extraordinary' and 'unprecedented' case that warranted an independent inquiry