Govt monitoring actions of several depts in NSEL crisis

Govt, which constituted a high-level panel, headed by Arvind Mayaram, submitted its report on the alleged irregularities at the NSEL in Sept last year

The government today said it is monitoring the actions of several departments regarding Rs 5,600 crore payment crisis at National Spot Exchange Ltd (NSEL), Parliament was informed today.

The government, which constituted a high-level panel, headed by Economic Affairs Secretary Arvind Mayaram, submitted its report on the alleged irregularities at the NSEL in September last year.

According to the report, NSEL episode may not have any major systemic impact. However, there are certain recommendations in the report on which follow up actions are required to be taken by the concerned ministry or department.

Consequently, these suggestions were sent to seven concerned departments/ministries for action in September 2013.

"The progress on the actions is being monitored through their Action Taken Notes and meeting at the higher levels," Minister of State for Finance Namo Narain Meena said in written reply to Rajya Sabha.

The Finance Ministry took over regulation of commodity futures markets from the Consumers Affairs Ministry in September after the payment crisis surfaced at the NSEL.

The exchange, promoted by Jignesh Shah-led Financial Technologies (India) was engulfed in a crisis after it suspended trade in July last year when two dozen counter- parties declared their inability to settle payments of Rs 5,600 crore to more than 13,000 investors.

As of now, NSEL has settled Rs 326.62 crore.