HC panel asks for audit of NSEL, others

8 brokers and 7 investors too come under the scanner

A committee of the high court here has found discrepancies in data collated from various sources and recommended audit of eight brokers and seven clients or investors in the case of the defunct National Spot Exchange (NSEL). The panel gave its recommendation to the HC, which usually studies these and calls all parties for a hearing before a judgment.

Appointed to investigate cases related to NSEL, the committee has named Motilal Oswal Commodities Brokers, Anand Rathi Commodities and Geofin Commotrade among the eight brokers, and Ketan Shah among seven investors or trading clients, for audit of their books.

The brokers and clients named were critical. “The committee did not call for data from us. Nor, were we heard,” said Ketan Shah.

The committee says while processing the claims received from various investors, it noticed large-scale discrepancies between these and the data presented by NSEL. Including discrepancies in the permanent account number (PAN/tax) numbers in some cases.

“As far as Motilal Oswal Commodities Brokers is concerned, there is no data mismatch. Based on the allegations from one of our customers (who has also invested through another broker), the said order also mentions that an audit be conducted of both the customer and,” said its spokesperson.

Adding, “We have been transparent and shared all relevant information with the authorities. We are co-operating to expedite delivery of justice to all the victims, including ourselves.  We ourselves are the largest investor in NSEL.”

According to trade sources, of 12,736 claims for refunds, the panel found discrepancies in data of only 15 members and clients of NSEL.

“The committee order states nothing against the brokers. The committee has only recommended to carry out a few random audits of some trading members, investors and NSEL — 14 clients across 8 brokers. We will furnish all necessary information and continue our efforts towards the speedy recovery of investors’ money,” said a spokesperson of Anand Rathi.