The wait for investors looking to exit their e-series exposure on the National Spot Exchange got longer with the Bombay High Court on Monday deciding to defer the final order by two weeks. Even as the court allowed the crisis-ridden bourse to take requests for financial settlement on the bullion demat contracts, the final decision on payouts was postponed to October 21.
During the fourth hearing on a petition filed by two parties -- Tarun Amarchand Jain HUF and Ashish Seth HUF -– the two-member Bench of Justices SJ Vazifdar and KR Sriram, guided for a direct involvement of the Forward Market Commission (FMC) and the Economic Offenses Wing (EOW) of the Mumbai Police in the e-series settlement.
Both these agencies have been entitled to demand ledgers, documents and records related to e-series contracts, including the ledgers of Brink's Arya, the custodian for e-series gold and silver stocks.
The court demanded that the money raised through the sale of e-series bullion linked to the requests for financial settlements should be transferred to a designated account. It further guided that, within two days of redemption requests, the petitioners could ask for details of such investors at the office of FMC. In case the petitioners have objections, they can intimate the FMC within four days of their inspection. None of the e-series settlement transaction are allowed without an approval from the commodity market regulator.
The hearing addressed a petition filed in mid-September that requested the court to direct NSEL to merge the delivery and settlement of e-series contracts with the other contracts. The petitioners have asked that the payment and settlement under the e-series should be made on the same terms as the proposed settlement for the “paired contracts”.
Meanwhile, the court has also guided all respondents, including, NSEL, FMC, Financial Technologies and Indian Bullion Market Association (IBMA), to submit their latest affidavits with statements on the proposed plan.