MUMBAI: Global auditing firm
PricewaterhouseCoopers (PwC) will conduct a special audit of MCX, while Chokshi
& Chokshi Chartered Accountants will run a forensic audit on bullion
contracts traded on the crisis-hit spot bourse NSEL. Both MCX and NSEL have
been promoted by the Financial Technologies (FT) group, which holds 26% and
over 99%, respectively, in the exchanges.
"The audit committee of the MCX board proposed the name of PwC for
special audit, which we have approved," said Ramesh Abhishek,
chairman, FMC. "Examining related party trades and other related
party transactions will be part of the terms of reference for the special
audit," said Abhishek.
FMC ordered the special audit last
month after noticing lapses at NSEL, which suspended trading in end-July
following a government direction, and at MCX, where an NSEL arm Indian Bullion
Markets Association was found to have traded.
Since NSEL is a subsidiary of the FT
group, its subsidiary's trading on MCX tantamount to the shareholder trading on
its own exchange, which commodity market regulations disallow. Three years ago,
FMC pulled up Jaypee Capital, the former anchor investor on rival commodity
bourse NCDEX, for trading on that exchange. MCX will have to bear the cost of
the special audit.
Source Economic Times
By
Shah Mohammad Abdul Qadir
PGDM 1st Sem
IIMT College Of Management
Greater Noida, UP
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