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Rediff.com  » Business » No question of govt taking over NSEL: Chidambaram

No question of govt taking over NSEL: Chidambaram

October 14, 2013 15:03 IST

Jignesh ShahRuling out takeover of the crisis-ridden NSEL, Finance Minister P Chidambaram has said that its parent group Financial Technologies and another related entity MCX-SX are under watch and persons responsible for the alleged irregularities will have to pay the price.

"There is no question of the government taking over NSEL.

“The government is concerned about the regulated entities, one of them is MCX which is a commodity exchange, other is MCX-SX and the other is the promoter of the MCX and MCX-SX, which is the Financial Technologies.

“All three are under watch", he said in an interview to CNBC-TV18.

National Spot Exchange Limited, promoted by Jignesh Shah-led Financial Technologies, is facing payment crisis of Rs 5,600 crore (Rs 56 billion).

The minister, who is in Washington to attend the IMF-World Bank meetings, said that NSEL has been operating under an exemption order and "if it has defrauded any of its investors or clients, (it) must pay a price."

Chidambaram further said that the Economic Offences Wing of the Maharashtra Police had registered a case and was probing the alleged irregularities.

"They made one arrest before I left. I didn't know about the second arrest.

“Those who have committed the acts of malfeasance or misfeasance will pay a price," he added.

As far as MCX-SX, a stock exchange promoted by Financial Technologies, is concerned, the minister said that Securities and Exchange Board of India had forced two of its directors to resign.

The MCX-SX, Chidambaram said, "is now managed by a board which does not have suspected or tainted people."

With regards to MCX, the minister said, "the show-cause notice has been issued, the two weeks period is to expire and the FMC (Forward Markets Commission) regulator will take action after he receives the reply to the show cause notice".

Image: Jignesh Shah

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