NSEL crisis: Brokers may boycott MCX, says investor forum

Sep 27 2013, 22:26 IST
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The brokers are also considering to boycott the trading for a day on all the exchanges. The brokers are also considering to boycott the trading for a day on all the exchanges.
SummaryThreat of boycott comes after failure of govt to resolve the NSEL crisis.

Brokers may boycott trading on the Multi Commodity Exchange of India Ltd (MCX) for a day as a protest against the government authorities' "failure" to resolve the National Spot Exchange Ltd (NSEL) payment crisis.

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"We will shortly decide the date for boycotting the trade on the Multi Commodity Exchange (MCX) for a day towards protest against government authorities' failure to resolve the National Spot Exchange Ltd (NSEL) payment crisis involving Rs 5,500 crore," NSEL Investors Forum President Sharad Kumar Saraf told reporters here today.

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The brokers are also considering to boycott the trading for a day on all the exchanges, Saraf said.

Reacting to Finance Miniser P Chidambaram's remark that NSEL was an unregulated entity and violated norms from day one, Saraf said: "We have not done any speculation and disappointed by the slow progress of the government's role in resolving the matter."

The Mayaram panel report has suggested that CBI, FMC and MCA will take appropriate action. They have listed out the irregularities. These authorities are looking into the matter and take action, Chidambaram said on Thursday.

A panel headed by economic affairs secretary Arvind Mayaram had been tasked to look into alleged irregularities in the functioning of NSEL, which is grappling with a Rs 5,500- crore payment crisis.

"The battle for recovering Rs 5,500 crore will be a long one and we need to have patience. The NSEL Investor's Forum will be converted into NSEL Investor's Society to get it registered to fight the legal cases," he said.

The forum has also requested its members and brokers to contribute money required to fight legal cases against 24 defaulters and NSEL promoters, he added.

The forum has already filed a complaint with Economic Offence Wing (EOW) and filed a writ in the Bombay High Court today seeking time-bound investigation process.

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