BSE asks for additional details of PwC audit

The BSE has sought more details on PricewaterhouseCooper’s (PwC) forensic audit on Multi Commodity Exchange MCX), to check for possible violations of listing agreement.

The exchange has written to MCX for greater details on the special audit. BSE has sought the names of related parties, which have been withheld by MCX.

Last week, MCX, which is listed solely on the BSE, had made the excerpts of the audit report public.

The stock exchange has demanded that the names of all related parties should be made available; it has also questioned whether these transactions were conducted at arm's length.

BSE wants the entire PwC report so that it can examine for any listing agreement violations.

An MCX spokesperson was unavailable for comment.

The special audit report by PwC had highlighted serious corporate governance lapses and non-compliance with regulations.

For instance, the audit revealed MCX had only disclosed the names of 235 related-party entities, while

PwC’s background checks revealed the names of at least 670 more known or related parties.

The Securities Exchange Board of India, too, is likely to direct BSE to look at the entire forensic audit report of MCX and examine it for violations of listing agreement.