Corp Affairs Min to take view on NSEL episode very soon: Pilot

The Corporate Affairs Ministry today said it will take a view "very soon" on the National Spot Exchange episode to ascertain whether it has violated the Companies Act.

It has received a request from the Ministry of Consumer Affairs seeking inputs on the whole episode, Corporate Affairs Minister Sachin Pilot told reporters here.

"I will be having a meeting with the officers to see what stand has to be taken keeping in mind the company law angle to all of this. Very soon we will take a view on what has to be done," he added.

NSEL, which suspended trade on July 31 following government directives, is grappling with a payment crisis of Rs 5,600 crore.

Pilot said the objective and endeavour of the government is to make sure that people don't lose their money.

"...If there is any issue of non-compliance that comes to our notice, we will certainly take action," he noted.

The ministry may look into issues like possible violations of various provisions of the Companies Act including those related to the promoters and top management.

Forward Markets Commission, the Finance Ministry and the Securities and Exchange Board of India (Sebi) are among the authorities looking into various aspects of the NSEL crisis.

NSEL paid just over half of Rs 175 crore first tranche due to investors on Tuesday, which saw the sacking of its top management including Managing Director and CEO Anjani Sinha.

The bourse has presented a seven-month plan to settle the dues, which is being overseen by commodities markets regulator FMC (Forward Markets Commission) and the Consumer Affairs Ministry.

NSEL has already drawn flak from the FMC, which has questioned the bourse's credibility and reputation for non- settlement of outstanding trade.

The regulator had also said the exchange furnished "insufficient and delayed information" that is neither accurate nor reliable.