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Following complaints that National Stock Exchange Ltd’s (NSEL) former managing director Anjani Sinha’s related companies participated in auction of commodities held by the exchange’s defaulters, the market regulator has tightened the auction process.
In a late evening circular on Thursday, the Forward Markets Commission (FMC) said, henceforth, all auction-cum-bidding process shall be overseen by a committee consisting of five members — one representative each of the Commodity Participants Association of India (CPAI), the Association of National Exchanges Members of India (ANMI), the BSE Brokers’ Forum — and two representatives of NSEL Investors Forum.
The regulator has asked these associations to form the committee immediately under intimation to the Forward Market Commission (FMC). This committee will have to report to the regulator in case of any adverse observations related to the auction process.
FMC added: “None of the group entities / associate concerns of NSEL and Financial Technologies (India) Ltd (FTIL) or any related entity shall participate in the bidding process.” Similarly, the FMC has also barred members of the board of directors, or employees of NSEL, FTIL, or its group entities/associate concerns or related entities from participating in the bidding process.
An NSEL spokesperson said: “Anjani Sinha has not disclosed his association with entities other than that he was officially nominated. The company will ensure that the instructions given by FMC for the auction process will be complied with.”
It is learnt that so far Rs 9 crore worth goods have been auctioned by NSEL.
In a late evening circular on Thursday, the Forward Markets Commission (FMC) said, henceforth, all auction-cum-bidding process shall be overseen by a committee consisting of five members — one representative each of the Commodity Participants Association of India (CPAI), the Association of National Exchanges Members of India (ANMI), the BSE Brokers’ Forum — and two representatives of NSEL Investors Forum.
The regulator has asked these associations to form the committee immediately under intimation to the Forward Market Commission (FMC). This committee will have to report to the regulator in case of any adverse observations related to the auction process.
FMC added: “None of the group entities / associate concerns of NSEL and Financial Technologies (India) Ltd (FTIL) or any related entity shall participate in the bidding process.” Similarly, the FMC has also barred members of the board of directors, or employees of NSEL, FTIL, or its group entities/associate concerns or related entities from participating in the bidding process.
An NSEL spokesperson said: “Anjani Sinha has not disclosed his association with entities other than that he was officially nominated. The company will ensure that the instructions given by FMC for the auction process will be complied with.”
It is learnt that so far Rs 9 crore worth goods have been auctioned by NSEL.
