Grant Thornton likely to conduct forensic audit of MCX

Written By Unknown on Rabu, 23 Oktober 2013 | 20.07

After conducting an intensive probe on the debt ridden National Spot Exchange (NSEL), the Forward Market Commission (FMC) is now turning its attention to Multi Commodity Exchange (MCX), the largest commodity exchange in the country, reports CNBC-TV18's Aastha Maheshwari.

CNBC-TV18 learns that FMC has asked Grant Thornton, who had come out with their forensic audit report on NSEL, to conduct a forensic audit on MCX too. Grant Thornton is likely to begin its probe by mid week of November.

Also Read: Jignesh Shah won't be permanent shareholder director on MCX

Among, many things, they will primarily examine the trading data of Indian Bullion Markets Association (IBMA) and the trades done by IBMA on MCX. Remember, IBMA is also an FT Group company, thus IBMA's trading done on NSEL is seen as a major violation by the FMC. It is also likely to examine trading done by other entities related to promoters or any group companies.

Grant Thornton is still to get an official assigning go ahead from FMC to conduct the forensic audit. This audit comes after MCX MD and CEO Shreekant Javalgekar's resignation. All of this comes in light of FMC's fit and proper show cause notice, which named top MCX officials Jignesh Shah, Joseph Massey and Shreekant Javalgekar. Two out of these have already stepped down from board.

Sources also indicate that Jignesh Shah and the others who were named In the show cause notice are likely to file their reply by then end of this week, after which the FMC will be finalizing their their fit and proper status.



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