Multiple agencies to start proceedings against NSEL
PrintListen to this Article
The report on the National Spot Exchange Limited (NSEL) crises has been submitted to Prime Minister via the Finance Minister and the FM is likely to take a decision on the matter.
The report lists that the NSEL crises has likely violated the Prevention of Money Laundering Act (PMLA Act), the Securities Contracts (Regulation) Act (SCRA Act), the Income Tax Act. The report has also suggested some immediate action that can be taken.
This immediate action is going to be taken by the respective investigative agencies. For instance, the enforcement directorate (ED) will file FIRs. The IT department has already initiated action against NSEL and Financial Technologies and the third key component is the Forward Markets Commission (FMC).
Sources have said that the FMC is examining the fit-and-proper-criteria as per the National Exchange policy. If the commission does not meet this fit-and-proper-criteria, then they may have to divest their stake in MCX .
According to the guidelines, for a person to be categorised under the fit-and-proper criterion, he/she should not have committed any economic offence; should have financial integrity and should not have been convicted by a court. Financial Technologies , the promoters of NSEL, may not meet some of these criteria, add sources.
Hence, it is a collective action that agencies including the FMC, ED, Serious Fraud Investigation Office (SFIO) and the Income Tax Department will be taking against NSEL.
The report, additionally, suggests some short-term as well as long-term measures. Long term measures will be on systemic stability, though the report is saying that there are no large systemic implications of the matter since it is only Rs 5000 crore matter. (CNBC)
Category : General | Comments : 0 | Hits : 277
Retirement fund body EPFO has said it will no longer use Aadhaar as a valid document for proof of date of birth. In an official circular on January 16, the Employees' Provident Fund Organisation (EPFO) said the decision to remove Aadhaar was taken following a directive from the Unique Identification Authority of India (UIDAI). As per the circular, Aadhaar is also being removed from the list of documents for correction in date of birth.
A five-day-long Special Parliament Session will be held from Monday. A Parliamentary Bulletin said, that on the first day a discussion on the Parliamentary Journey of 75 years starting from Samvidhan Sabha - Achievements, Experiences, Memories, and Learnings will be held in Lok Sabha. The Government has listed Bill on the appointment of the Chief Election Commissioner, and other election commissioners in the upcoming Parliament Session. Apart from this The Advocates (Amendment) Bill, Th...
Artificial intelligence can substitute neither the human intelligence nor the humane element in the adjudicatory process, the Delhi high court has held and said ChatGPT can't be the basis of adjudication of legal or factual issues in a court of law. Justice Prathiba M Singh stated that the accuracy and reliability of AI generated data is still in the grey area and at best, such a tool can be utilised for a preliminary understanding or for preliminary research. The court's observati...
Domain + Website + Hosting + 2 email ids @ Just Rs.3100/- with 30 days Money Back Guarantee. CASANSAAR offers a Golden opportunity for Professionals, where they could create their own stunning website with multiple designs and templates to choose. It will be completely your own space, which is going to be a Dynamic Website and could be edited as per your wish. Now Get 2 Email ID's with Your Own Websi...
The Delhi High Court Monday sought the Centre’s stand in a plea against a notification where chartered accountants, company secretaries and cost accountants have been included among “reporting entities” under the Prevention of Money Laundering Act (PMLA) A division bench of Chief Justice Satish Chandra Sharma and Justice Sanjeev Narula granted time to Additional Solicitor General Chetan Sharma, who appeared for the Centre, to “seek instructions” and listed the ma...
Comments