PwC, in its special audit report on Multi Commodity Exchange of India’s operations, noted that Pradeep Bansal, a member related to an entity banned by the capital market regulator, had executed 478.63 bln rupees worth futures trade on MCX.
Securities and Exchange Board of India, on Jul 23, 2003, till the completion of probe, had banned Bansal Sharevest Services and its director Pradeep Bansal from dealing in securities in and outside stock exchanges. Bansals were running an illegal or dabba trade in securities. In 2006, SEBI barred Bansals from both the stock exchanges effective Jul 18, 2006.
Bansal was also a shareholder of Indian Bullion Market Association, a subsidiary of scam-hit NSEL, which was illegally providing liquidity to MCX bullion futures
The PwC audit found that “during the period of 2003 till the period of being debarred by SEBI in 2006, Pradeep Bansal had executed trades aggregating to approximately 47,862.69 crores on MCX.” In 2004, Rajeev Bansal, related to Bansal Sharevest, executed 176.45 bln rupees of trade on MCX, which is 9.42% of the total turnover of MCX during that year and suggesting he provided liquidity to the exchange, PwC noted. Pradeep Bansal was also a shareholder of Indian Bullion Market Association, a subsidiary of scam-hit National Spot Exchange, which was illegally providing liquidity to MCX bullion futures despite being a group subsidiary.
PwC was appointed by Forward Markets Commission in December to conduct a special audit of MCX, after it found a number of irregularities while probing the 56-bln-rupee payment crisis at National Spot Exchange, the report of which was submitted in April. MCX shares ended at 537.45 rupees on NSE, down 4.6% from Monday’s close. –Cogencis