NEW DELHI: As a multi-agency probe continues into the Rs 5,600-crore payment crisis at National Spot Exchange Ltd (NSEL), the government may consider streamlining the norms for commodities and capital markets, regulated by FMC and Sebi, respectively, to plug potential regulatory gaps.
The idea is to make the regulations governing commodity derivatives marketsmuch more stringent and bring them at par with the norms applicable for Sebi-regulated capital markets, sources said.
The move is one of recommendations expected to be made by a high-level panel, headed by Economic Affairs Secretary Arvind Mayaram, looking into the NSEL issue, which is expected to hold its next meeting tomorrow.
The government had also set up two working groups under this panel, comprising representatives from Sebi, RBI, FMC, Enforcement Directorate, Income Tax Department, Finance Ministry, Corporate Affairs Ministry and Consumer Affairs Ministry, among others.
The panel will make its final recommendations after taking into account reports of the two groups.
So far, it has not found any systemic fallout of the NSEL matter, sources said, adding that it is likely to recommend steps required for plugging the regulatory gaps between different agencies.
Among others, the panel, which includes secretaries from Corporate Affairs and Consumer Affairs Ministries, Revenue Department, and head of Enforcement Directorate, is also expected to suggest steps for strengthening the Forward Contracts Regulations Act ( FCRA) and measures for ensuring systemic stability within the commodity spot markets.
Part of Jignesh Shah-led Financial Technologies group, NSEL is grappling with a payment crisis for settling dues worth Rs 5,600-crore and it had to suspend trading activities on July 31 after a government directive.
