Mayaram-led panel of secretaries to look into NSEL violations

The special team will be supported by the two working groups headed by Director, ED and Deputy Governor RBI respectively

A panel of secretaries headed by Economic Affairs Secretary Arvind Mayaram will look into violations by National Spot Exchange Ltd, which is facing the second default in payment deadline today.

The panel, which will also suggest measures to be taken to check any systematic fallout of the NSEL crisis on the financial system, includes Company Affairs Secretary, Consumer Affairs Secretary and Revenue Secretary.

'A team has been formed by the government to look into the violations of the law and regulations by NSEL so that we could safeguard the interests of the investors,' a senior government official said.

The special team will be supported by the two working groups headed by Director, Enforcement Directorate (ED) and Deputy Governor RBI respectively.

Meanwhile, an order said that 'both working groups will complete their tasks within two weeks time and submit their report to special team for further consolidation and finalisation of the report for submission to government'.

The group headed by ED official will look into the violation of laws and regulations by NSEL, its associated companies and participants. It will also include representatives from Directorate of Revenue Intelligence, SEBI, RBI, FMC, SFIO, Department of Consumer Affairs and representative of Directorate of investigation CBDT.

The second group, headed by Deputy Governor of RBI, will examine and suggest measures that could be taken to ensure that there is no systematic impact of NSEL developments. It will include FMC Chairman, a Sebi member, and Adviser (FSDC) Department of economic affairs.

NSEL, promoted by Jignesh Shah-led Financial Technologies (India) Ltd, is facing the problem of settling Rs 5,600 crore dues to 148 members/brokers, representing 13,000 investor clients, after it suspended trade on July 31 on the government direction.