NSEL Said to File Complaint Against Former MD Sinha, Seven Others OUR BUREAU MUMBAI National Spot Exchange (NSEL) has filed a complaint against its former MD & CEO Anjani Sinha and seven other employees of the bourse with the Economic Offences Wing, said a person aware of the development. Five of the 24 borrowers have also been named in the complaint. Sinha and the employees are being blamed for the payment crisis on the bourse, which is accused of having launched contracts that fell beyond the pale of spot exchange norms. The government last month directed the bourse to cease its controversial contracts and settle all outstanding positions. Investors on NSEL have lent around . 5,600 crore to 24 borrowers and clients who traded through them. In a separate development, Kirit Somaiya, BJP leader filed a public interest litigation against NSEL and its promoter on Friday. Promoters and directors of National Spot Exchange should be declared as not fit and proper and should be barred from holding any fiduciary position in any company, said a public interest litigation filed by Kirit Somaiya, BJP leader and president of Investor Grievances Forum, in the Bombay High Court on Friday. Somaiya has also prayed that the court should direct ministries of consumer affairs and finance, commodity market regulator FMC, EOW Mumbai and Central Vigilance Commission to initiate criminal action against NSEL for allegedly violating conditions of Forward Contracts Regulation Act, which bars spot exchanges from running contracts with settlement periods beyond eleven days and from its members carrying out short sales. Somaiya further alleges in his petition that Jignesh Shah, the man behind the exchange’s promoter Financial Technologies, and Shankarlal Guru, chairman, NSEL are liable to pay . 8,000 crore to farmers and small investors for failure of the bourse to settle trades conducted on it. Somaiya also sought to rope in capital markets Sebi into taking action against NSEL as listed company GCM Commodities & Derivatives allegedly raised . 7 crore through a public issue announced in June/July 2013.
Posted on: Sat, 31 Aug 2013 04:26:23 +0000
Trending Topics
Recently Viewed Topics
© 2015