Markets

High Court orders forensic audit on NSEL e-series contracts

Our Bureau Mumbai | Updated on March 12, 2018 Published on October 28, 2013


The Bombay High Court has directed the Forward Markets Commission (FMC) to appoint within two weeks an independent agency, which will carry out forensic audit on the much debated e-series contracts that was carried out by the scam-hit spot exchange NSEL.

In the last hearing, the Court directed the Union Government, the Ministry of Finance and Forward Markets Commission (FMC) to file a fresh affidavit seeking clarity on the regulation of NSEL. FMC had filed the same and mentioned that it has power to supervise and regulate the e-series contracts.

On Monday, the Court directed the commodity market regulator to follow up with the audit agency and ask them to submit a report on the same within a month of its appointment. The Court has also directed FMC that the expenses of the forensic audit will be borne by NSEL. It also directed the authorities to defreeze NSEL accounts for the same.

Hearing the case, a Division Bench comprising Justice S.J. Vazifdar and Justice K.R. Sriram, came up with this order after FMC said that in a bid to protect investors from further damage and harassment, it was willing to conduct the audit of those e-series contracts involving about 33,000 investors.

NSEL has to settle dues worth Rs 525 crore in the e-series while the amount is about Rs 5,574.31 crore in the non e-series segment after it abruptly suspended trading in August.

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Published on October 28, 2013
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