[1] The Economic Survey of 2002-03 of the Government of India also recommended setting up a national-level, integrated market for agricultural products, as did the Planning Commission.
The Government of India issued a Gazette Notification dated 5 June 2007 granted general exemption under Section 27 of the Forward Contracts Regulation Act (FCRA.)
[6] Immediately after being designated the agency to supervise and regulate spot exchanges by the MoCA, the FMC sought clarification from NSEL regarding the fulfillment of conditions stipulated under the exemption notification.
Responding twice to the show cause notice, NSEL wrote to the Ministry clarifying that the exemption granted to it under Section 27 of FCRA was general and not specific in nature.
[8] On 6 August 2013, the MoCA also issued a gazette notification giving omnibus powers to the FMC to take all actions necessary against all persons including defaulters, brokers, warehouses etc.
[9] After the exchange closed abruptly, 24 entities collectively failed to honour their commitment, giving rise to a payment default of Rs 5,600 crore.
'[11] Even the investigating agencies including the Enforcement Directorate (ED) and the Economic Offences Wing (EOW) of the Mumbai Police have traced the entire money trail of Rs.
[13] In the NSEL crisis, big brokers have many irregularities by mis-selling the products, misrepresenting the facts and manipulating the KYC and modifying the client code.
[18] The Economic Offences Wing (EOW) of Mumbai Police also found evidence of large-scale irregularities on the part of these brokers in the National Spot Exchange Ltd (NSEL) case.
On 27 June 2016, some trading clients received notices from the income-tax department seeking details, among others, of source of funds, bad debt claimed during assessment years 2014-15 and 2015–16 and their transactions made on NSEL.
According to the report in The Economic Times, the letter terms the claims by traders, brokers, and their nonbanking finance companies "illegal", "multiple" and for "bogus losses".
[29] On 12 December 2016, in a written reply to a question in Lok Sabha, the then Minister of State for Finance, Shri Arjun Ram Meghwal also made it clear that the veracity of these investors is being looked into.
[32] In addition, the Serious Fraud Investigation Office (SFIO) has sought detailed answers from the 13,000 so-called investors to uncover if the brokers induced them to trade in the commodities spot exchange.
[35] On 15 February 2016, The Hindu Business Line in its editorial stated: 'The use of Section 396 of the Companies Act to push through the merger also sets a bad precedent.
[36] On 16 February 2016, The Economic Times in its editorial stated: 'The government has set a bad precedent with the forcible merger it has ordered of National Spot Exchange Ltd (NSEL) into its promoter company, Financial Technologies (India) Ltd (FTIL).
[38] Later, in a significant judgement, the apex court decided against the forced merger of NSEL and FTIL that was ordered by the Ministry of Corporate Affairs,[39] which was the first ever instance of invocation of Section 396 of the Companies Act 1956.
Krishnan and Ramesh Abhishek, regarding the Rs 10,000 crore damage suits filed by 63 moons technologies and their role in the NSEL payment default crisis.