Govt reviews NSEL probe, wants CBI representation in high-level panel

The crisis-ridden NSEL is facing payment defaults of Rs 5,600 crore to over 13,000 investors that was discovered in July last year.

The government on Monday reviewed the actions taken by various regulators and enforcement agencies against the National Spot Exchange Ltd (NSEL) and also sought representation from the Central Bureau of Investigation on the high level panel that is now actively involved in the probe.

“We took stock of investigation in the NSEL issue. The investigations are on track and action is being taken as per schedule,” said Arvind Mayaram, secretary department of economic affairs after the meeting.

According to sources, a proposal was also mooted to enlarge the scope of the high level panel and include a representative from the CBI on the panel to stay abreast of the investigation.

At present, the panel headed by Mayaram that was set up in August last year to review the NSEL crisis includes representatives from the Enforcement Directorate, Forward Markets Commission, Reserve Bank of India, Securities and Exchange Board of India, corporate affairs ministry and revenue department.

The meeting comes soon after the CBI filed a preliminary enquiry against former Sebi chief CB Bhave and ex-member KM Abraham for alleged irregularities in grant of license to MCX Stock Exchange way back in 2008.

The agency has also carried out raids at various locations related to the NSEL case and has also questioned NSEL promoter Jignesh Shah in this regard.

The Mayaram panel is understood to have also reviewed the action taken by the ED and the Economic Offences Wing of Mumbai Police.

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The crisis-ridden NSEL is facing payment defaults of Rs 5,600 crore to over 13,000 investors that was discovered in July last year.