Expert Zone

Straight from the Specialists

NSEL crisis puts spotlight on conflict of interest

Photo
-

(Any opinions expressed here are those of the author and not necessarily of Reuters)

The ongoing National Spot Exchange Ltd (NSEL) payment crisis has highlighted the need for better regulation of commodities exchanges and increased transparency in corporate governance.

The NSEL is run by Financial Technologies (India) Ltd (FTIL), which also promotes the MCX commodities exchange and the MCX-SX stock exchange. All three are facing scrutiny from regulators.

In August, the NSEL suddenly suspended trading and halted the settlement of outstanding contracts worth over 55 billion rupees ($869.84 million).

  • Editors & Key Contributors