At least three auditors have come under the scanner of the Corporate Affairs Ministry for their alleged lapses in carrying out audits of crisis-hit National Spot (rpt) Spot Exchange ltd and its promoter group Financial Technologies.
The ministry has issued show cause notices to three auditors seeking explanation for the lapses in auditing the books of NSEl and Financial Technologies (India) ltd, according to a senior official. The notices have been sent for violations of Companies Act.
Besides, the Ministry has sought clarifications from the law Ministry, Sebi and Forward Markets Commission (FMC) to finalise action against “gross violations” by FTIl and related entities.
Jignesh Shah-led FTIl is the promoter of National Spot Exchange ltd (NSEl). In the wake of the Rs5,600 crore payment crisis at the bourse, these entities alongwith those related to them have come under the scanner of multiple agencies for various violations. The ministry has found “gross violations” by FTIl board on corporate governance matters and is looking at the issue of ‘fit and proper’ status of directors, among others.