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Commodity markets regulator FMC has appointed global auditing firm Price Waterhouse Coopers (PwC) as the auditor to conduct a special audit of MCX and examine if there was trade by related parties on the bourse.
In the wake of Rs 5,600 crore payment crisis at NSEL, the FMC had in September ordered special audit of the MCX for auditing related party deals especially by IBMA and NBHC.
National Spot Exchange Ltd (NSEL), a sister concern of MCX, is facing payment settlement problems after it suspended trading in July-end following the government direction due to violation of norms. Both the exchanges are promoted by FTIL.
"The Commission approved the appointment of Price Waterhouse Coopers (PwC) to conduct special audit of MCX," Forward Markets Commission (FMC) said in its fortnightly report that detailed the performance of commodity bourses.
The regulator has approved the name of PwC as suggested by the audit committee of the exchange's board to the FMC.
The terms of reference would be examination of trades on MCX by related parties and also expenditure items such as donations and warehousing charges.
The special auditor will study if NSEL arm Indian Bullion Markets Association (IBMA) and FTIL's subsidiary National bulk handling corporation (NBHC) traded on the MCX.
Besides, the regulator said it has approved appointment of one independent director and four shareholder directors on the MCX Board.
Retired IAS officer Satyananda Mishra has been appointed as Independent Director on the MCX board till March 31, 2016. He has also been appointed as the chairman of the Board.
FMC said it has appointed retired IRS officer G Anantharaman as chairman of the Audit Committee and retired IAS officier Ravi Kamal Bhargava as chairman of Remuneration Committee of the Exchange.
SBI Deputy Managing Director and Group Executive B V Chaubal, Canara Bank General Manager M A K Prabhu, Bank of Baroda General Manager Sanjay Agarwal and Union Bank of India General Manager K N Reghunathan have been appointed as shareholder directors on the MCX Board, the regulator said.
Their appointment term is for one year 2013-14 or up to the date of Annual General Meeting, it added.
Highlighting the performance of 17 commodity bourses, FMC said the turnover of these bourses fell by 34 per cent to Rs 76.77 lakh crore till November of this fiscal, as against Rs 116.26 lakh crore in the same period last year.
The turnover from farm items fell by 33 per cent to Rs 10.09 lakh crore during April-November period of this fiscal, from Rs 15.36 lakh crore in the same period last year.
The business from bullion and metals fell by 36 per cent to Rs 34.18 lakh crore and Rs 13.89 lakh crore, respectively, as against Rs 53.63 lakh crore and Rs 21.57 lakh crore in the review period.
Similarly, the turnover from energy items fell by 27 per cent to Rs 18.60 lakh crore in the April-November period of 2013-14 fiscal, as compared with Rs 25.69 lakh crore in the year-ago period.
