The much-anticipated settlement process of the National Spot Exchange (NSEL) began on Tuesday, with the crisis-hit bourse defaulting partially on its first payout and sacking its CEO, Anjani Sinha. The exchange could manage to disburse only Rs 92.13 crore, much lower than the commitment of Rs 174.72 crore.
“The total amount being disbursed today in a proportionate manner is Rs 92,12,81,182,” stated a release by NSEL. Incidentally, the spot exchange had collected Rs 81.13 crore in the escrow account till August 19.
Meanwhile, the exchange has sacked MD & CEO Anjani Sinha pending an enquiry. Sinha will stay on as a “special officer assisting in the recovery process”, said the exchange in a release. Along with Sinha, six other head of departments have also been told to leave.
According to the payment schedule proposed earlier by NSEL, starting August 16,2013 till Mid-March 2014 there will be pay-in by the borrowers every Friday and payouts to the investors would take place every subsequent Tuesday. NSEL had further stated that dues amounting to Rs 4,200 crore would be settled over a period of 20 weeks with each week seeing payouts of Rs 174.72 crore. This would be followed by Rs 86 crore of settlement for the next 10 weeks.
NSEL had also said that during the period of 30 weeks, the remaining dues of Rs 1,219.71 crore would be settled through sale of commodities, fixed assets and land by some members.
Meanwhile, the Forward Markets Commission (FMC) has clarified that NSEL can go ahead with the settlement of dues of Indian Bullion Market Association (IBMA) though with certain conditions.
“The total amount received till today should be distributed proportionately to various members including IBMA,” stated a letter by FMC, however, adding that only the amount due to genuine trading members, who have cleared trades through IBMA, should be released. “The amounts due of defaulter members for whom IBMA has cleared the trades should be withheld... The amount due on account of proprietary transactions of IBMA and amounts due to related and connected entities of NSEL, its group and management should be withheld,” added the letter.