The Telegraph
Sunday , April 27 , 2014
CIMA Gallary

MCX to act on audit report

New Delhi, April 26 (PTI): The MCX board today decided to take action on the “adverse findings” of PricewaterhouseCoopers’ special audit report on corporate governance issues at the commodity exchange.

“The board considered PwC’s special audit report. We have decided to take all the necessary actions required. The actions will depend on the adverse findings of the report,” MCX chairman Satyananda Mishra said after the meeting.

The issue of sharing of critical information with potential bidders for promoter FTIL’s stake in the bourse did not come up for discussion, he said.

The board also did not deliberate on seeking an extension of the April 30 deadline set by regulator FMC to ensure FTIL’s stake in MCX is reduced to 2 per cent from the existing 26 per cent, in line with regulatory norms, Mishra said. These issues were not on the agenda of the board meeting, he added.

In the wake of the Rs 5,600-crore payment crisis at NSEL, commodity markets regulator FMC in December 2013 had appointed PwC to audit books of MCX to examine if NSEL arm Indian Bullion Markets Association and FTIL’s subsidiary National Bulk Handling Corporation traded on MCX.

The regulator had approved the name of PwC as suggested by the audit committee of the exchange’s board to the FMC.