NSEL contract case: FMC shortlists Haribhakti & Co and Chokshi & Chokshi Chartered Accountants for e-series Audit

Commodity market regulator Forward Markets Commission (FMC) has shortlisted two Mumbai-based chartered accountancy firms — Haribhakti & Co and Chokshi & Chokshi Chartered Accountants — to conduct a forensic audit of gold and silver backing the socalled e-series bullion contracts on crisis-hit National Spot Exchange (NSEL), which suspended their trading on August 6 based on a government diktat.

FMC chairman Ramesh Abhishek confirmed that two Mumbaibased firms had been shortlisted for the audit and said the appointment of one of them was imminent next week, but declined to name the firms. However, ET learnt from two persons close to the development that Haribhakti and Chokshi & Chokshi Chartered Accountants were indeed the firms to have been shortlisted by the regulator.

The Bombay High Court, which is hearing petitions filed by a few NSEL investors seeking a stay on the financial settlement of the eseries by the exchange till the source of funds used and quantity claimed by the bourse are ascertained, directed FMC last month to get a forensic audit of the said products done. 

Forensic audit is examination of a firm's financial information which can be used as evidence in a court. 

"We received 99 names from the Institute of Chartered Accountants of India ( ICAI), of which, we shortlisted four firms having 10 partners. After presentations made by these firms, we shortlisted two and sent them the terms of reference for the audit and asked them to come back to us with their offers. We will select one of them next week," said Abhishek, who was speaking at the sidelines of a Ficci summit here on Friday. Grant Thornton has already completed a forensic audit of NSEL. (Economic Times)