Why Target 63 Moons Management For NSEL Payment Default?

The then management of NSEL, which had the privilege of full functional autonomy, was saying as late as August 2013 that the commodities existed in the warehouses. The management at that time was the sole point of contact with FMC or DCA. The Board of NSEL never had any direct contact with the FMC or the DCA as also the latter has never approached or written to the Board on any concern that they might be having on the operations of the exchange.

Even the show cause notice issued to NSEL was addressed to the then Managing Director and CEO and the Board was never informed of the same. Neither the DCA nor FMC nor the Broking firms nor the management ever raised any red flag to the Board that could have alerted them to take any preventive action.

It is unfair to hold the Board of NSEL responsible for the crisis when they had no role to play in it.

Reference: http://www.nationalspotexchange.com/Truth_About_NSEL.htm

For more information check 63 Moons.