E-series payments: NSEL says awaiting FMC, court nod

Written by Press Trust of India | Mumbai | Updated: Feb 4 2014, 03:57am hrs
NSELNSEL said e-Series investors could realise their funds once approvals. Reuters
Crisis-ridden National Spot Exchange (NSEL) today said e-Series investors could realise their funds once approvals from Forward Markets Commission (FMC) and the courts are in place.

It is expected that investors in e-Series units will be able to realise their investments once the FMC and the courts grant the approval, NSEL said in a statement.

Under e-series contracts, retail investors bought and sold commodities in de-materialised form. It functioned like the cash segment in equities, but offered commodities in the demat form in smaller denominations.

FMC is monitoring recovery of dues of about Rs 5,600 crore at the spot commodity bourse which suspended trade in July last year after two dozen counterparties declared their inability to settle payments.

While responding to the Chokshi & Chokshi's draft audit report on the e-Series contracts, which was carried out following an October 28, 2013 Bombay High Court order, NSEL said as the auditors have digressed far beyond its terms of reference, the exchange has requested FMC to consider this aspect before taking any punitive steps.

However, the exchange claimed that draft report has found that the quantity of goods at its godowns was matching as per the reconciliation exercise carried out by auditors.

NSEL further claimed that many of the issues raised in the audit report were actions taken solely under the direction of the erstwhile MD and CEO Anjani Sinha and his team against whom criminal actions have been initiated.