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

Astonishing breadth and depth of ancient Indian knowledge systems

The Greatest Books of Ancient India: Incredible Ideas about Science, Music, Maths, Art and More By Dr. Pradeep Chakravarthy and Dr. R. Thiagarajan Hachette India, 208 pages, Rs 399

Strong El Nino threat over India`s monsoon, food & water security

India is heading into the southwest monsoon season this year under the shadow of a rapidly strengthening El Nino, with meteorologists warning that the climate phenomenon could significantly disrupt rainfall patterns, intensify heat stress and place additional pressure on the country’s agriculture-d

How corporates can nudge real change

The Business Of Business Is (Not) Just Business: How Behavioural Tools Can Drive Real Change Edited by Sutapa Banerjee, with Foreword by Nadir Godrej HarperCollins, 336 pages, Rs 699

India stopped jailing people for paperwork. Now comes the hard part

A small pharmacist in Rajkot neglects to change a notice in his store under a little-known clause of a public health law. This was not only a non-compliance matter, but also a criminal offence, and a jail sentence was the punishment under the old system. Not a fine. Not a warning. Jail. Now scale

How to make our cities climate-resilient

Indian cities are growing at a pace that our infrastructure and climate can no longer sustain. This rapid urban sprawl increasingly strains urban systems, overshadowing the severe environmental fallout produced in its wake. The repercussions include Urban Heat Island Effect (UHI), Urban Floods, and many mo

Trump’s China setback pushes US to woo India

A week after Donald Trump’s visit to China – the first by an American president in nine years, US secretary of state Marco Rubio arrived in India on May 23 on a four-day visit aimed at resetting Washington DC’s relations with New Delhi and attending the third Quad ministerial meeting.