This Article is From Sep 24, 2013

NSEL to face separate action for any companies law violations


In addition to the necessary action to be taken by the Finance Ministry in the NSEL matter, the Corporate Affairs Ministry will act separately if any violations are found with respect to the companies law.

The Finance Ministry will decide on action to be taken on alleged irregularities at crisis-hit National Spot Exchange Ltd (NSEL) as per the report of a high-level panel headed by Economic Affairs Secretary Arvind Mayaram, Corporate Affairs Minister Sachin Pilot said here yesterday.

"As far as the Corporate Affairs Ministry is concerned, if there are any violations of company law, we will take separate action (on NSEL)," Mr Pilot told reporters on the sidelines of a function at the BSE.

The panel is believed to have submitted its report yesterday on the basis of recommendations by the two working groups set up to look into the matters concerning NSEL, which is grappling with Rs 5,600 crore payment crisis.

Asked about the steps required to ensure such mishaps do not occur again, Mr Pilot said, "We intend to make sure we have a great ecosystem for the investors and whatever have been the shortcomings in our internal structural system that we have to change.

"We will take proper action (in such cases) and we will safeguard the interest of the investors who have put in money, that is the primary interest," he said.

On the Registrar of Companies (RoC) probe into the NSEL issue, Mr Pilot said his ministry has received the RoC report, and he "will submit that report to the committee that has been formed. The final decision will be taken by the Finance Minister."

However, he refused to divulge details of the RoC report.

"Whenever we receive inputs from different departments, we are submitting them to the committee and the last decision will be taken by the Finance Minister," he said.