NSEL says no discrepancy in e-series stock holdings in vaults

The exchange said its stock positions in gold, silver and platinum for e-series contracts tally with depository records
Mumbai: The crisis-ridden National Spot Exchange Ltd (NSEL) on Thursday said in a release that according to an audit report by Sharp and Tannan Associates, there is no discrepancy in the exchange’s e-series stock holdings in vaults.
As per the exchange’s instruction, a physical verification of stocks of precious metals lying with Brinks Arya India Pvt. Ltd at its vaults in Mumbai, Kolkata, New Delhi, Hyderabad, Ahme-dabad and Jaipur was conducted by Sharp and Tannan between 26 August and 31 August, an NSEL update on its website said.
However, the release added there is a backlog in settlement due to redemption pressure.
In a related development, the warehousing associate firm of Financial Technologies (India) Ltd, or FTIL, the parent firm of NSEL, clarified it does not handle the exchange’s warehouses and that most of its managed stocks are funded by banks after independent audits by lenders.
National Bulk Handling Corp. Ltd (NBHC), in a statement on Thursday said: “In the light of NSEL development, most of the banks have conductedare conducting audits of their stocks in NBHC’s warehouses and no deviations have been found… Clients are welcome to visit the warehouses to check their stocks, to quell any fears whatsoever."
The firm, which provides commodity and collateral management services along with its stakeholders—FTIL, group firm Multi Commodity Exchange of India Ltd (MCX), and State Bank of India—said it manages about ₹ 5,500 crore worth of stocks, of which about ₹ 4,200 crore of stocks are funded by banks to commodity owners such as farmers, processors and traders.