This Article is From Oct 01, 2013

Corporate Affairs Ministry orders inspection of NSEL, Financial Technologies books

Corporate Affairs Ministry orders inspection of NSEL, Financial Technologies books
New Delhi:

The Corporate Affairs Ministry has ordered inspection of accounts of beleaguered bourse National Spot Exchange Ltd (NSEL) and its promoter entity Financial Technolgies (FT) amid the continuing Rs 5,600 crore payment crisis faced by the bourse.

NSEL, promoted by Jignesh Shah-led Financial Technologies group, is already being investigated by various other regulators and agencies in the wake of payment crisis and continued violations of regulations.

A senior ministry official said inspection has been ordered into the books of accounts of Financial Technologies and NSEL to check whether these entities violated any rules under the Companies Act.

Under the Companies Act, the ministry can order inspection of books of account of companies.

Meanwhile, the ministry has sought details from the Registrar of Companies (RoC) on crisis-ridden NSEL's parent firm Financial Technologies (India) Ltd and other related entities in few weeks.

"We have asked Registrar of Companies (RoC) to give us a full report of companies in question, and we will look for any non-compliances with companies law," Corporate Affairs Minister Sachin Pilot said earlier this week about the NSEL crisis.

NSEL on Tuesday said that the economic offences wing of the Mumbai police had frozen its bank accounts.

(Read: No payout as Mumbai police freezes NSEL bank accounts)

Finance Minister P Chidambaram had said last week that NSEL was violating rules from the day one and the matter was being looked into by MCA, CBI and commodity markets regulator FMC, among others.