CORPORATE GOVERNANCE

NSEL CRISIS

NATIONAL SPOT EXCHANGE LIMITED

INTRODUCTION JOINT VENTURE BETWEEN FTIL AND NAFED COMMENCEMENT – 15TH OCTOBER’2008 HEADQUARTERS:MUMBAI

THE NSEL CRISIS - BEGINNING

5600 crore rupees scam!!! An outreach in 16 states trading in 52

commodities What triggered the scam? - permission to retrade without taking delivery of

goods

NSEL CRISIS – WHAT WENT WRONG?

THE PROBE

31st july 2013 NSEL was stopped from carrying out new contracts

Investors protested on 28th august 2013 Filing of FIR by PANKAJ RAMNARESH SARAF

AGAINST NSEL ACTION BY ECONOMIC OFFENCE WING

FURTHER STEPS

POLICE ARREST OF MD ANJANI SINHA ,ASSISSTANT VICE PRESIDENT AMIT MUKHERJEE AND OTHER BORROWERS

ATTACHMENT OF PROPERTY OF DEFAULTERS FUDGING OF DOCUMENTS BY NSEL OFFICIALS

SETTLEMENT OF DEFAULTERS

ATTACHMENT OF ASSETS OF DEFAULTERS MAJOR DEFAULTERS- MOHAN INDIA VIMLA AGROTECH SWASTIK ARK IMPORTS 90% OF 5660 CRORES CLAIMED TO BE

RECOVERED

CORPORATE GOVERNANCE LAPSES

DUTIES TOWARDS PROTECTION OF INTEREST OF SHAREHOLDERS

CORPORATE GOVERNANCE FAILURE -I. INTEGRITYII. TRANSPARENCYIII. COMPLIANCEIV. ETHICS

CORPORATE GOVERNANCE LAPSES

ISSUE OF CONFLICT OF INTEREST BREACH OF LAW NO DECLARATION OF DEFAULTS DISCREPANCIES IN MINUTES BLAME GAME AND RESIGNATION BY DIRECTORS

ROLE OF MINISTRY OF CONSUMER AFFAIRS,FMC

DELAYED ACTION POLITICAL MANUEVERING BLAME GAME BY AUTHORITIES DENIAL BY FMC

ROLE OF FORENSIC AUDITORS - INSUFFICIENT CO-OPERATION BY NSEL - NSEL MCX IBMA FTL – WORKING IN TANDEM ROLE OF PROMOTERS

EFFECTS OF THE SCAM

DERAILING OF THE COMMODITIES MARKET EROSION OF INVESTOR CONFIDENCE LIQUIDATION BY RETAIL AND INSTITUTIONAL

PLAYERS

MINIMIZATION OF IMPACT BY SEBI

Renewal of license Introduction of a new committee Seizure of some operational powers of NSEL

THANKYOU