MCX Board to take action on PwC's audit report

Tags: News
The MCX Board today decided to take action on "adverse findings" of PricewaterhouseCoopers' special audit report on corporate governance issues at the commodity exchange.

"The Board considered the PwC's special audit report. We have decided to take all necessary actions required. The actions will depend on the adverse findings of the report," MCX Chairman Satyananda Mishra told PTI after the meeting.

The issue of sharing of critical information with potential bidders for promoter FTIL's stake in the bourse did not come up for discussion, he said.

The board also did not deliberate on seeking extension of April 30 deadline of set by regulator FMC to ensure FTIL's stake in MCX is reduced to 2 per cent from the existing 26 per cent in line with regulatory norms, Mishra said, adding that these were not on the

agenda of the Board meeting.

In the wake of Rs 5,600-crore payment crisis at NSEL, commodity markets regulator FMC in December, 2013 had appointed PwC to audit books of MCX to examine if NSEL arm Indian Bullion Markets Association and FTIL's subsidiary National Bulk Handling Corporation (NBHC) traded on MCX.

The regulator had approved the name of PwC as suggested by the audit committee of the exchange's board to the FMC.

Both National Spot Exchange Ltd (NSEL) and MCX are promoted by Jignesh-Shah-led Financial Technologies India Ltd.

Following the huge payment scam at its subsidiary NSEL, the Forward Markets Commission (FMC) had ruled that FTIL was not 'fit and proper' to hold more than 2 per cent stake in MCX.

Yesterday, FTIL could not finalise the bidders to sell its stake in MCX as buyers sought more time to submit binding offers on the grounds that the bourse is not providing critical information to them. Bidders also sought more time to know the outcome of the MCX Board on PwC's audit report.

FTIL had said it had asked MCX to cooperate with bidders in providing key information and enable the stake sale process completes at the earliest.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • India’s festivals teach us to share our wealth and joy

    India is an aporia in its own true sense.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Sustainable model for rural sanitation

Prime minister Narendra Modi has promised to build a toilet ...

Zehra Naqvi

How smells evoke strong memories

Remember that time when a passing fragrance transported you to ...

Dharmendra Khandal

Indian zoos need a fresh approach

Recently, when a man jumped in a tiger trench of ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture