In race for MCX audit, PwC's nose ahead

PricewaterhouseCoopers (PwC), an accounting firm, is a front runner in the shortlist of auditors to conduct a special audit of the Multi Commodity Exchange of India (MCX).

The Forward Markets Commission (FMC) had ordered a special audit of the exchange when it was revealed IBMA, a subsidiary of National Spot Exchange Limited (NSEL), had traded on the MCX, which wasn't allowed. It is learnt FMC is likely to pick PwC or Grant Thornton. FMC had mulled picking Thornton, but in the NSEL cases in the high court, issues were raised about Thornton. Later, Thornton's forensic audit report for NSEL was questioned by Financial Technologies' brass. FMC had outlined terms of reference for the audit in a letter sent to the MCX board. It had asked the board to get an audit of related-party deals, including IBMA's and FT Group's collateral management firm National Bulk Handling Corporation, among others. FMC has asked to get audited all expenses above Rs 25 lakh. It will soon decide a firm for the forensic audit of NSEL e-series contracts, in line with the high court order.