The Forward Markets Commission (FMC) has allowed the three former directors of Multi Commodity Exchange (MCX) and Financial Technologies India Ltd (FTIL) to cross-examine Grant Thornton, which conducted the forensic audit on the trouble-ridden National Spot Exchange Ltd (NSEL).

Based on the audit report, the Commission had issued a show cause notice in the fit-and-proper case to FTIL promoter Jignesh Shah, former MCX director Joseph Massey, former MCX MD Shreekant Javalgekar and FTIL, the promoter of NSEL.

Responding to the show cause notice, all of them have sought permission to cross-examine the audit firm and they will do so on November 25, FMC Chairman Ramesh Abhishek said on the sidelines of a FICCI conference here.

The Commission has also called for financial bids from two shortlisted audit firms to conduct forensic audit on NSEL e-series.

Abhishek said the decision will be made by next week.

Hearing investors’ petitions in the e-series case, the Bombay High Court had ordered the Commission to appoint an agency to audit and submit a report.

The Court has stopped all settlement in the e-series contract till the report is finalised.

Earlier, Sharp & Tannan, which conducted audit in the e-series on the behest of NSEL, found no discrepancies.

Asked what impact it will have if the three directors are declared not fit and proper — given the fact that they have already resigned from MCX — Abhishek said the Commission will consider all this when it takes the final decision in the fit-and-proper case.

(This article was published on November 15, 2013)
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