Is ICEX Giving a Clean Chit to LES Committee Even When the Forensic Audit Reveals Mismanagement?

19 August 2021

There was mismanagement in the liquidity enhancement scheme (LES) at the Indian Commodity Exchange Ltd (ICEX) that resulted in a loss of Rs15 crore. The board of directors of ICEX ordered a forensic audit while sending its managing director and chief executive (MD & CEO) Sanjit Prasad on leave.

 

The forensic audit indicted members of the LES committee, including the MD & CEO. And yet, there is little disciplinary action and the MD & CEO is back at the helm of  ICEX from  leave without even replying to the show-cause notice (SCN) issued by the disciplinary action committee (DAC), says a whistle-blower.

According to the whistle-blower, as directed by the Securities & Exchange Board of India (SEBI), the ICEX board appointed a forensic auditor for the complaints received by the Exchange on the mismanagement of the LES. The forensic auditor submitted its report on 30 October 2020 based on which the board took action. 

In its meeting on 12 May 2021, ICEX board held that the MD & CEO, chief financial officer (CFO), other key management persons (KMPs) and members of the LES committee, excluding outside expert and shareholder directors are responsible for the mismanagement and loss to the Exchange. 

 

The board then constituted the DAC consisting of Suresh Kumar Agarwal as chairman and Chitra Shringare and Suresh Babu Konakanchi as members.