New Delhi: The Reserve Bank of India today said the crisis at the NationalSpot Exchange can have a cascading effect on other financial markets as manybrokerages are active in multiple segments.
“Many brokerage firms are active in multiple segments, including equity,commodity and forex. A loss in one segment of their operations can have acascading effect on other segments, in turn, propagating contagion effectsthroughout the market,” it said.
Meanwhile, the Bombay High Court in an interim order has asked the Forward Market Commission to appoint an agency to conduct the forensic audit of e-series contracts in the scam-hit NSEL. The e-series contracts is a unique market segment, which functions like the cash segment in equities, but offers commodities in the de-mat form in smaller denominations.
The NSEL was offering spot as well as E-series contracts, which were subsequently banned by the government.
The court then ordered that only FMC would appoint the agency to conduct the forensic audit.