Corp affairs min issues notices to auditors in NSEL, FTIL case

Tags: Companies
At least three auditors have come under the scanner of the Corporate Affairs Ministry for their alleged lapses in carrying out audits of crisis-hit National Spot Exchange and its promoter group Financial Technologies.

The ministry has issued show cause notices to three auditors seeking explanation for the lapses in auditing the books of NSEL and Financial Technologies (India) Ltd, according to a senior official. The notices have been sent for violations of Companies Act.

Besides, the Ministry has sought clarifications from the Law Ministry, Sebi and Forward Markets Commission (FMC) to finalise action against "gross violations" by FTIL and related entities.

Jignesh Shah-led FTIL is the promoter of National Spot Exchange Ltd (NSEL). In the wake of the Rs 5,600 crore payment crisis at the bourse, these entities alongwith those related to them have come under the scanner of multiple agencies for various violations.

The ministry has found "gross violations" by FTIL board on corporate governance matters and is looking at the issue of 'fit and proper' status of directors, among others.

NSEL promoters are found to have violated the provisions of the Companies Act.

An inspection of NSEL books by the ministry had found that the exchange's board failed to perform its duties towards shareholders in violation of regulations.

The interim report of inspection, carried out by the Registrar of Companies (RoC), Mumbai, had found corporate governance failure at multiple levels, including lack of transparency, integrity, compliance and ethics.

EDITORIAL OF THE DAY

  • Finance minister has been pragmatic in exempting FIIs from MAT claims

    Good sense has finally prevailed in the government, with finance minister Arun Jaitley announcing the income-tax officials will exempt overseas funds

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Amita Sharma

Examining times for learning

The central advisory board of education in its meeting on ...

Zehra Naqvi

If you bend, you won’t break

There’s an ancient exercise about a green, supple new branch ...

Gautam Gupta

Bring on the Benares brigade

It was in 2003 when I first started work and ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture