SEBI the market
regulator will be pursuing the guilty parties in the NSEL crisis with more
determination, as the securities market regulator’s merger with the commodities
market regulator was getting closer to completion, as decided by Government. It
was said that SEBI was looking to begin enforcement measures against entities
involved in the case. They would also initiate adjudication & disgorgement
proceedings against guilty entities in the crisis if necessary. SEBI was
then likely to play a bigger role after completion of FMC integration. Legal
matters related to NSEL too would be handled by SEBI’s legal department. Latest
action was expected soon.
It was said that SEBI
has sought a report on the entire NSEL crisis from the regulator. A popular
question that was floating at the time was as to why was SEBI now been given
charge of the guilty in the NSEL crisis? Was FMC not able to take a call on the
crisis even though they had the powers to do so? It’s had been a substantially
long time since FMC has been sitting on the NSEL matter. The guilty are still
at liberty with all their assets still not discharged. It has also come to
light after a fresh probe that commodities law violation would continue to be
tried under the Forwards Act, however SEBI would have to enforcement powers
over them.
This had come as a
major relief to FMC, as sources say they were facing difficulties in the NSEL
cases due to personnel issues. For example, they were facing problems to
defend the challenge of ‘fit & proper’ against FTIL due to lack of in-house
legal department. FMC on many occasions had to rely on outside help on the
legal matters. But, unfortunately did not have the provisions to get legal
consultants on board.
Hopefully now since
SEBI is going after the guilty in the crisis hit NSEL, we can hope this matter
will take a worthy turn, relieving the innocent and taking appropriate actions
against the guilty.
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