MCX vows to take action on PwC’s special audit report
28 Apr 2014
The MCX board has announced that it will take action on the findings of a special audit report by PricewaterhouseCoopers on corporate governance issues at the commodity exchange.
"The board considered the PwC's special audit report. We have decided to take all necessary actions required. The actions will depend on the adverse findings of the report," MCX chairman Satyananda Mishra told PTI after the board meeting on Friday.
The issue of sharing of critical information with potential bidders for Financial Technologies India Ltd's promoter stake in the bourse did not come up for discussion, he said.
The board also did not deliberate on seeking extension of April 30 deadline of set by the Financial Markets Commission 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, adding that these were not on the agenda of the board meeting.
In the wake of a Rs5,600 crore payment crisis at NSEL, commodity markets regulator FMC in December 2013 had appointed PwC to audit the books of MCX to examine if the National Spot Exchange Ltd's arm Indian Bullion Markets Association and FTIL's subsidiary National Bulk Handling Corporation (NBHC) traded on MCX.
The regulator had approved PwC as the auditor, as suggested by the audit committee of the exchange's board to the FMC.
Both National Spot Exchange Ltd (NSEL) and MCX are promoted by the Jignesh-Shah-led Financial Technologies India Ltd.
Following the huge payment scam at its subsidiary NSEL, the FMC had ruled that FTIL was not 'fit and proper' to hold more than 2 per cent stake in MCX.
Earlier last week, FTIL could not finalise the bidders to sell its stake in MCX as buyers sought more time to submit binding offers on the grounds that the bourse is not providing critical information to them. Bidders also sought more time to know the outcome of the MCX Board on PwC's audit report.
FTIL had said it had asked MCX to cooperate with bidders in providing key information and enable the stake sale process completes at the earliest.