"Out of the total Rs 440 crore, NSEL has disbursed Rs 237 crore till date towards settlement of e-series gold and silver units to investors," said Saji Cherian, CEO & MD, National Spot Exchange (NSEL).
He said around 33,000 investors held metals in electronic form under e-series contracts. Some investors have redeemed gold and silver in physical form, while others in cash.
Over 89 per cent of e-gold and 70 per cent of e-silver units have been credit to investors, he added.
Commodity markets regulator Forward Markets Commission (FMC) allowed NSEL to begin rematerialisation and financial closure of e-series contracts after an audit report found that goods were intact in these contracts.
In e-series contracts, investors had held 910 kg gold, 46 tonnes silver, 19 kg platinum, 62 tonnes copper, 61 tonnes zinc, 49 tonnes lead and 17 tonnes nickel.
NSEL began rematerialisation of e-series contracts from April 12 and financial close out of these contracts from May 6. Rematerialisation is the process by which a client can get his electronic holdings converted into physical form.
NSEL, a subsidiary of Jignesh Shah-led Financial Technologies India, is grappling with a payment crisis for settling dues worth Rs 5,689 crore after it suspended trading activities in July last year following a government order in view of violation of certain norms like short selling.
NSEL was given exemption to operate the spot exchange provided it does not allow short selling. Short selling means a seller is allowed to sell without owning stock.
It has sought the intervention of state governments in its attempt to recover Rs. 5,335 crore owed by 22 defaulters to investors.
Out of 24 defaulters, only two members have paid fully, while the rest 22 members are still defaulting on payment. So, we have written to chief ministers of six states seeking their intervention in recovering money, Cherian told PTI.
Separate letters have been written to the chief ministers of Gujarat, Punjab, Haryana, Uttar Pradesh, Rajasthan and Karnataka. The Gujarat and Punjab governments have extended assistance on this issue, he said.
The NSEL chief said the exchange is also seeking the help of the Delhi government.
The exchange has been grappling with a payment crisis since suspending trade in July last year following a government order. Multiple agencies are probing the NSELs activities and assets of defaulters have also been attached.