 "Govt mulls shifting FMC to finance ministry")
Officials in the know said a proposal to this effect had been mooted and a decision could be taken in the next few days. When asked, officials in the department of consumer affairs (DCA) declined to comment on the matter.
Other key financial regulators such as the Securities and Exchange Board of India and the Pension Funds Regulatory and Development Authority come under the finance ministry's purview. Bringing FMC, too, would ensure better coordination, offficials said.
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In a related development, the DCA on Tuesday took serious note of the default by NSEL in making payout of the first instalement of dues and apprised the Prime Minister's Office. Officials said the department, along with the finance ministry and FMC, was evaluating the payment schedule.
DCA is ready to investigate all activities of other spot exchanges as well. "The default by the exchange in making payout is perhaps the only incidence of this kind in the history of commodities trading in India or perhaps the entire world," Consumer Affairs Secretary Pankaj Agarwala told Business Standard.
He said the department had categorically told NSEL it would have to stand guarantor to all the settlements. "The exchange is obliged to give a counter-guarantee to all the stakeholders. If it means making payments, so be it," Agarwala said.
He said DCA had also urged the corporate affairs ministry to seek details from the registrar of companies on the nature of ownership in NSEL and the kind of liability the promoters had.
The first instalment of scheduled payout at NSEL faced a 48 per cent deficit in pay-in by borrowers; the exchange had got only Rs 92.7 crore till Tuesday evening. NSEL in its settlement plan to FMC had committed a payout of Rs 174.72 crore to investors as on the same date.