The Corporate Affairs Ministry has ordered inspection of books of accounts of crisis-ridden National Spot Exchange Ltd (NSEL) and its promoter Financial Technologies (India) Ltd.

This move comes close on the heels of the Finance Ministry asking various Ministries and departments to take action pertaining to their domain. The inspections have been ordered under Section 209A of the Companies Act, it is learnt.

The Economic Offences Wing (EOW) had on Tuesday frozen the bank accounts of NSEL. The exchange had contended that this move would come in the way of the exchange making scheduled payment of about Rs 174.72 crore.

According to a settlement plan, NSEL would have to pay Rs 3,494.4 crore this year in instalments of Rs 174.72 crore every Tuesday.

NSEL has defaulted on payouts for the past six weeks and settled about Rs 150 crore till date.

The troubled exchange owes about Rs 5,600 crore to about 13,000 investors, represented by 148 members.

The Government has ruled out any systemic danger to the financial system due to the Rs 5,600 crore payment crisis arising from defaults by NSEL.

(This article was published on October 2, 2013)
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