NSEL lost direct marketing licence from M'rashtra 9 months ago

License of NSEL was cancelled on Dec 26 last year as there were no bidders and agent himself was purchasing the material, says Maha Agri Marketing Director Deepak Taware

Troubles started brewing at crisis-hit NSEL even nine months ago with Maharashtra Agriculture Department cancelling its direct marketing licence after finding irregularities at the bourse.

"The license of National Spot Exchange (NSEL) was cancelled on December 26 last year as there were no bidders and agent himself was purchasing the material," Maharashtra Agriculture Marketing Director Deepak Taware told PTI.

After inspections of the exchange, irregularities were found in the running of the exchange, following which license was cancelled, he added.

"There were complaints from farmers as well and there was no electronic display of the prices of goods," Taware added.

When contacted, an NSEL spokesperson said the exchange's licence was cancelled and after that exchange also reapplied with clarification.

Taware, however, said: "As on date the exchange's license stands cancelled."

NSEL had obtained licences for direct marketing from Maharashtra, Karnataka, Gujarat, Madhya Pradesh, Odisha and Rajasthan.

NSEL, promoted by Jignesh Shah-led Financial Technologies (India) Ltd, is facing a 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 government's direction.

Three directors from NSEL' board have already resigned and the exchange had earlier this month sacked its entire top management including the Managing Director and CEO Anjani Sinha.