FMC appoints Patni to audit NCDEX’s books
Commodity exchanges regulator Forward Markets Commission (FMC) on Monday appointed Kolkata-based auditor Patni & Co to conduct, among other things, an audit of the books of the agri bourse National Commodity & Derivatives Exchange (NCDEX).
By Ram Narsinghdev Sahgal, ET Bureau |
MUMBAI: Commodity exchanges regulator Forward Markets Commission (FMC) on Monday appointed Kolkata-based auditor Patni & Co to conduct, among other things, an audit of the books of the agri bourse National Commodity & Derivatives Exchange (NCDEX). Though the audit is a routine exercise conducted every year by FMC for all exchanges, the decision to audit NCDEX���s books comes at a time instances of financial mismanagement have been brought out by the regulator against it. ET reported about the NCDEX audit in its edition on February 28.
���The NCDEX audit becomes more critical since there are concerns over cases of financial mismanagement at the exchange,��� FMC director Sanjay Lunia said. ���We will inform the auditor of their appointment today (Monday) and meet them over the week to brief them on the scope of work to be undertaken. Thereafter, the audit will commence within a week or two and take around a month or more to be completed.���
Apart from financial accounts, the inspection will encompass the day-to-day working of the exchange, cases of regulatory violations and exchange systems. A senior NCDEX official said the exchange ���welcomes any such audit���. Asked to comment on the instances of financial mismanagement enumerated in FMC order that was uploaded on the regulator���s website last Thursday, the official said: ���Regarding instances of expenditure quoted in the order, we do not agree with the manner in which these have been referred in the order.
All such expenditure has been made out of the exchange���s own funds. These instances relate to past periods and are internal in nature. These instances of expenditures have no relation to the issue of fixation of rate of transaction charges.���
���The NCDEX audit becomes more critical since there are concerns over cases of financial mismanagement at the exchange,��� FMC director Sanjay Lunia said. ���We will inform the auditor of their appointment today (Monday) and meet them over the week to brief them on the scope of work to be undertaken. Thereafter, the audit will commence within a week or two and take around a month or more to be completed.���
Apart from financial accounts, the inspection will encompass the day-to-day working of the exchange, cases of regulatory violations and exchange systems. A senior NCDEX official said the exchange ���welcomes any such audit���. Asked to comment on the instances of financial mismanagement enumerated in FMC order that was uploaded on the regulator���s website last Thursday, the official said: ���Regarding instances of expenditure quoted in the order, we do not agree with the manner in which these have been referred in the order.
All such expenditure has been made out of the exchange���s own funds. These instances relate to past periods and are internal in nature. These instances of expenditures have no relation to the issue of fixation of rate of transaction charges.���
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