Now, Sebi to probe FTIL’s financial statements -Governance Now

Now, Sebi to probe FTIL’s financial statements

The Sebi move comes after FTIL’s auditor raised questions on the credibility of the company’s financial statements in the wake of the NSEL crisis

GN Bureau | September 26, 2013

Having watched the payments crisis of the National Spot Exchange Limited (NSEL) unfold from the sidelines, the Securities and Exchange Bureau of India (Sebi) has now jumped in to probe if there were any alleged irregularities in the financial statements submitted by the promoter company FTIL.

According to a report in Mint, a day after FTIL’s auditor Deloitte Haskins and Sells withdrew its audit reports on the company’s financial statements for fiscal 2013, the markets watchdog will now investigate the company’s financial statements for possible frauds.

Upon investigation, if incidents of frauds and misrepresentation come to light, Sebi may debar the company’s promoters and directors from accessing the capital markets for raising funds. Further, they may also be banned from holding directorship in any listed firm, Sebi officials have said.

Meanwhile, FTIL refused to comment on the issue.

The company’s auditor has raised serious concerns on its financial statements, saying that they cannot be relied upon inlight of the ongoing crisis at NSEL.

Jignesh Shah led FTIL is the majority stakeholder of NSEL with a 99.99 percent stake. The exchange has been in choppy waters after it suspended trading in all its forward trading contracts on July 31 without giving out any reason. Since then, the exchange has been struggling to make payments worth Rs 5,600 crore due to around 13,000 investors.

Comments

Other News

₹10 lakh penalty on Ola for pre-ride ‘tip’ feature

The Central Consumer Protection Authority (CCPA) has imposed a penalty of ₹10 lakh on ANI Technologies Private Limited, which operates the ride-hailing platform Ola, for soliciting additional payments from consumers before completion of their journeys through its pre-ride ‘tip’/‘add-o

Retail inflation crosses 6% mark

Retail inflation based on Consumer Price Index for October has reached 6.09%, whereas year-on-year food inflation, based on Consumer Food Price Index, for October is 8.94%, an official release said on Thursday. Year-on-year inflation rate based on All India Consumer Price I

Cabinet approves museum at North-South Block complex

The Cabinet Committee on Economic Affairs, chaired by prime minister Narendra Modi, on Wednesday has approved the development of the Yuge Yugeen Bharat Museum (YYBM) at the North and South Block Complex, New Delhi, at an estimated total project cost of ₹3,230 crore, as appraised by the Public Investmen

Cabinet approves extension of Noida metro corridor

The Union Cabinet, chaired by prime minister Narendra Modi, has approved the extension of Aqua Line Metro Rail Corridor from Noida Sector-51 to Greater Noida Sector-04 of Noida Metro Rail Project with corridor for a length of 8.449 km with 5 elevated stations. On operationalization of this corridor, Noid

India reaffirms commitment to climate multilateralism

India has reaffirmed its commitment to climate multilateralism and the principles of Equity and Common But Differentiated Responsibilities and Respective Capabilities (CBDR-RC), calling for a fair, equitable and ambitious outcome at the 31st Conference of the Parties (COP31) to the United Nations Framewo

How the mind can help the body heal itself

Why do some people recover from illness against all odds? Can our beliefs, emotions and consciousness influence the body’s ability to heal? Drawing on over three decades of experience in medicine, research and medical innovation, internationally trained ophthalmologist and author Dr Dinesh Verma ex