FM to decide on action against NSEL: Pilot

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Sachin Pilot, Minister of State for Corporate Affairs. File Photo.
Sachin Pilot, Minister of State for Corporate Affairs. File Photo.

The Finance Ministry will decide on the action to be taken against NSEL after a high-level panel, headed by Economic Affairs Secretary Arvind Mayaram submits its report on alleged irregularities in the crisis-hit bourse today, Corporate Affairs Minister Sachin Pilot said today.

“The Finance Minister (P Chidamabram) will decide what action should be taken (against NSEL) on the basis of Mayaram panel recommendations. As far as the Corporate Affairs Ministry is concerned, if there are any violations of company law, we will take separate action,” Pilot told reporters at a function at the BSE here.

The panel had met on Friday and finalised the report on the National Spot Exchange Ltd (NSEL), which is grappling with Rs 5,600 crore payment crisis, on the basis of report of two working groups — Enforcement Directorate and Reserve Bank.

On his plans to ensure such mishaps do not recur, Pilot said, “We intend to make sure we have a great ecosystem for the investors and whatever have been the shortcomings in our internal structural system that we have to change. We will take proper action and we will safegaurd the interest of the investors who have put in money, that is the primary interest.”

On the Registrar of Companies (RoC) probe into the NSEL issue, Pilot said his ministry has received the RoC report, and he “will submit that report to the committee that has been formed. There is no use of having four different committees. The final decision will be taken by the FM.”

However, he refused to divulge the details of the RoC report saying since multiple agencies are involved, there is no use of having four different committees taking various decisions. When ever we receive inputs from different departments, we are submitting them to the committee and the last decision will be taken by the finance minister.

On chit funds, he said they are a state subject and every state has a registrar of chit funds who registers these companies and therefore monitoring is the responsibility of the state.

“As far as my ministry is concerned, we have formed a committee with the RBI, MCA and SEBI and we don’t want any gaps. An amendment was brought in to take action on illegal chit fund operations because we don’t want small investors to suffer,” Pilot said.

(This article was published on September 23, 2013)
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