NBHC says banks audited their stock, did not not find deviation

Several banks have financed farmers on bases of warehouse receipts issued by NBHC

National Bulk Handling Corporation Limited (NBHC), a warehousing and collateral management company promoted by the Jignesh Shah controlled Financial Technology today said, "In the light of NSEL development, most of the banks have conducted/ are conducting audits of their stocks in NBHC’s warehouses and no deviations have been found.”

The issue of stocks lying with the NBHC warehouses arised after NSEL fiasco and reports that in most of the warehouses of NSEL stock was less tha what was claimed by that spot exchange.

Several banks have financed farmers on the bases of warehouse receipts issued by the NBHC based on the stocks deposited by the farmers in the company accredited warehouses.

In view of this today in a press statement the warehousing company from FT group distanced itself from NSEL saying that, “NBHC managed stocks at only 5 warehouses of pre-stored commodities for NSEL only during June-July, 2013, in NBHC’s history and also no warehouse receipts were issued by NBHC against this stock. The assignment was just to manage the warehouses. It has since end of August given back these warehouses to NSEL along with the balance stocks. As of date, NBHC carries stocks worth Rs 65 lakh on behalf of NSEL.”