Mayaram finds out 'systemic failures' in NSEL crisis

Findings based on reports of two working groups -- Enforcement Directorate and Reserve Bank of India

The high-level panel on alleged irregularities at NSEL today submitted to the Finance Minister its report which is believed to have pointed out certain 'minor systemic' failures in the functioning of the exchange.

The report details long term measures, Economic Affairs Secretary Arvind Mayaram, who headed the Panel, told reporters here. Meanwhile, according to sources, the NSEL report has found "minor systematic" failures in the functioning of the exchange.

The panel had met on Friday and finalised the report on National Spot Exchange Ltd (NSEL) - a commodities bourse which is grappling with Rs 5,600 crore payment crisis. The findings are based on reports of two working groups -- Enforcement Directorate and Reserve Bank.

Secretaries from the Corporate Affairs and the Consumer Affairs Ministries, the Revenue Department, and head of Enforcement Directorate, were part of the committee.

The government might consider streamlining the norms for commodities and capital markets, regulated by FMC and Sebi, respectively, to plug potential regulatory gaps, sources said.

The government had last month set up two working groups under this panel, comprising representatives from Sebi, RBI, FMC, Enforcement Directorate, Income Tax Department, Finance Ministry, Corporate Affairs Ministry and Consumer Affairs Ministry, among others.

A part of Jignesh Shah-led Financial Technologies group, NSEL is grappling with a payment crisis for settling dues worth Rs 5,600-crore and had to suspend trading activities on July 31 following a government directive.