New Document top_band
 
Business Standard

PWC to do special audit of MCX

Chokshi & Chokshi to do forensic audit of NSEL e-series

Related News

The Forward Markets Commission (FMC) on Tuesday approved (PWC) as the auditor to conduct a special audit of and Chokshi & Chokshi chartered accountants to conduct the forensic audit of NSEL’s e-series contracts.  The regulator had asked to conduct a forensic audit of the e-series contracts following an observation by the Bombay High Court. For this, the regulator had asked the Institute of Chartered accountants of India (ICAI) to suggest four names. But suggested 99 names, out of which made the selection. The audit is crucial because the settlement of 33,000 investors hinges on it. The audit will take six weeks. The MCX special audit could start within a week and is likely to be completed in two months.

E-series contract of the NSEL was actually a delivery contract where in the commodity purchased by the investors was lying in the demat form. As the NSEL suspended trading in that too, these investors had option to get the commodity which was mostly gold and silver converted in to physical form. But an NSEL investors filed a case in the high court urging merger of e-series with other settlement which has increased confusion. This happened at a time when conversion of gold, silver in physical form was getting delayed due to clumsy procedures.

The forensic audit will check whether the money was paid by the buyers and seller had delivered commodity and whether there was any default or settlement guarantee fund was used or not among other issues.

In case of special audit of the MCX, the FMC has approved name of PWC as suggested by the audit committee of the exchange’s board to the FMC. The audit could start within a week and likely to be completed in 2 months’ time. The terms of reference include auditing related party deals. Indian Bullion Merchants’ association (IBMA), a subsidiary of NSEL and national bulk handling corporation (NBHC), a warehousing arm of the FT group had traded on MCX which was not allowed. Now the special audit will study all related party deals. The FMC  has also directed the forensic auditor to review “all individual transactions of expenses incurred above Rs.25 lakh and nature of such expenses, nature of services received and other relevant details to establish genuineness of the expenditure”. The special audit of MCX will include scrutiny of the defaulting members of the commodity exchange since its inception, counter-parties of such members and the action taken by MCX against the defaulters.

Read more on:   
|
|
|
|
|
|

Read More

Investors see green shoots in capital goods

Stock investors are betting big on the green shoots in the capital goods sector, saying the top 10 sector companies have shown good recovery in all ...

Quick Links

 

Market News

Stock picking by institutional investors

India's benchmark indices rose about 14 per cent during the April-June period, the best quarterly gain since September 2009. Foreign investors ...

Offshore India funds, ETFs see $294-million inflows in Apr-Jun

There was an outflow of $1 billion during the quarter and a net infusion of $1.29 billion into offshore funds and ETFs

F&O expiry: Nifty ends 70 points lower at 7,721

Markets ended lower following expiry of July F&O contracts and sales by foreign funds

Five takeaways from HCL Technologies numbers

What the profit numbers do not reflect, however, is the huge order wins by the company during the quarter

Indoco Remedies zooms over 30% in two-days on strong Q1 earnings

The stock surged 17% to Rs 256, extending its previous day's 14% rally on the National Stock Exchange.

Back to Top