Mayaram panel finds no systemic impact in NSEL mess: Srcs

The Mayaram panel which is probing the National Spot Exchange (NSEL) mess found no systemic implications due to the default, reports CNBC-TV18’s Aakansha Sethi, quoting sources.

The panel, which met on Wednesday, is going to have another meeting on Friday after which a final report will be submitted. The report will be based on the reports of two sub-committees. One sub-committee was headed by RBI Deputy Governor KV Chakrabarty, which looked into the systemic implications. The other sub-committee was under the Enforcement Directorate’s chairperson Rajan Katoch, which looked into various violations by the NSEL. Also read: 58 Investors file complaint against NSEL promoters Sources say that the committee is likely to have not found systemic implication as it only concerns about Rs 5,000 crore. However, it is going to suggest measures for stability in the future in regulation of these changes. One of these recommendations is to make the Forward Markets Commission (FMC) stronger. The finance ministry, for this, is considering making the FCRA (Foreign Contribution Regulation Act) more stringent. It is already been placed before the Parliament. So, they are going to take measures by which this can be strengthened. The committee will also consider uniform rules for Sebi and FMC. Sebi, as they find, has most of the regulation changes and hence FMC regulation should also be modeled on those lines. It might also consider merger of FMC and Sebi. The FSLRC (Financial Sector Legislative Reforms Commission) suggested it, but is at a preliminary stage. The panel has also identified various laws that have been violated by NSEL, say sources. Also, the government cannot interfere in the settlement between investors. There would have been question marks whether proper criteria were not met by Financial Technologies, which owned a stake in MCX, if the government were to interfere in that regard. However, sources in the finance ministry say that it is not in the preview of this panel as MCX is already a separately regulated body.