NSEL case: SFIO seeks details from trading clients

The Serious Fraud Investigation Office (SFIO) has sought specific details from trading clients of the NSEL in the nearly Rs 5,600 crore scam at the now defunct spot exchange.
Sources said SFIO has recently sent out an exhaustive list of questions to various trading clients in the NSEL matter.
The questionnaire has been sent to entities who were found by the probe agency to have actively traded on the exchange, they added.
The detailed list of questions touch upon various aspects including details about the members, whether they were aware about the risk factors at the NSEL and information about how they placed trades at the exchange.

The agency was asked by the Corporate Affairs Ministry, late last year, to probe FTIL and its 18 associates with respect to irregularities at NSEL.
Financial Technologies (India) Ltd, which has changed its name to 63 Moons Technologies Ltd, is the parent of NSEL.

Among others, SFIO has posed questions related to delivery of goods on NSEL, the clients' compliance with VAT (Value Added Tax) and Income Tax returns, sources said.
The information from the trading clients has been sought under provisions of the Companies Act, 2013.
The payment crisis at NSEL came to light in late 2013.
SFIO has been asked to investigate the affairs of NSEL, FTIL, their 18 subsidiaries and associate companies as well as the 20 defaulting entities and their nexus with the brokers.

The agency is a multi-disciplinary organisation that probes serious financial frauds.
Following the scam at NSEL, FTIL and various other entities have come under the scanner of multiple investigation agencies, including the Economic Offences Wing (EOW), Mumbai Police and Enforcement Directorate.