After much delay, the Forward Markets Commission (FMC) today cited an internal communication with the Finance Ministry before the Bombay HC to clarify that as per the August notification, FMC does indeed have the power and responsibility to monitor NSEL e-series.
FMC tried justifying the inaction prior to the notification arguing that NSEL was not recognised under the Forward Contracts Regulation Act, nor was it registered with the FMC and hence was beyond the scope of FMC's regulation. Also Read: NSEL board, management set to face criminal chargesBombay HC observes that this was turning into a fight between the centre and the FMC and was a sorry state of affairs. The HC has directed FMC and the Finance Ministry to put the clarification in an affidavit. The HC will give a final ruling on October 28. 
