Mayaram panel sends NSEL report to PM Office

A high-level panel headed by Economic Affairs Secretary Arvind Mayaram that looked into alleged irregularities at the NSEL, today submitted its report to the Prime Minister's Office (PMO).

The panel, which is believed to have found some minor systemic problems in the function of the National Spot Exchange Limited (NSEL), yesterday gave its report to Finance Minister P Chidambaram for necessary action.

"We have sent the NSEL report to PMO today," a senior official said.

 The panel headed by Mayaram was set up in August to look into the Rs 5,600 crore payment crisis at the Financial Technologies-promoted NSEL.

The panel has found "minor systemic" failure and the report details long term measures to deal with such irregularities, sources said.

The government might consider streamlining the norms for commodities and capital markets, regulated by FMC and Sebi respectively, to plug potential regulatory gaps, they added.

Secretaries from the Corporate Affairs and the Consumer Affairs Ministries, the Revenue Department, and head of Enforcement Directorate, are part of the committee.

 The report was finalised based on the reports of two working group from Enforcement Directorate and Reserve Bank.

The government had last month set up these working groups under this panel, comprising representatives from Sebi, RBI, FMC, Enforcement Directorate, Income Tax Department, Finance Ministry, Corporate Affairs Ministry and Consumer Affairs Ministry, among others.

NSEL, part of Jignesh Shah-led Financial Technologies group, is grappling with a payment crisis for settling dues worth Rs 5,600-crore and had to suspend trading activities on July 31 following a government directive.