A month after the crisis-ridden National Spot Exchange (NSEL) claimed that eight of its 24 members were willing to pay their dues on time, they have paid just over 2%of their combined liabilities so far. Exchange officials said these processors backed out of their payment commitments, worsening the settlement crisis.
Of their total outstanding of R2,181 crore, as estimated by the exchange on August 4, the processors have so far paid R45.50 crore. While two of the processors — Tavishi Enterprises and Yathuri Associates — haven’t paid at all, only Aastha Minmet India has settled its obligations. Barring Aastha Minmet, NSEL has declared all the seven processors defaulters. These processors are Loil Continental Food, Loil Health Foods, Loil Overseas Foods, Mohan India, Tavishi Enterprises, Yathuri Associates and White Water Foods.
On August 14, NSEL chalked out a 30-week settlement period and declared weekly pay-out of R174.72 crore for close to five months and that of R86.02 crore later, relying heavily on the commitments of these processors to make smooth payouts in the initial phases and also to give some relief to those that were seeking more time, market sources said.
On August 4, NSEL had also told the FMC that 13 other processors were seeking more time to settle the dues and had offered to pay 5 % of their total obligations of R3,107 crore every week and talks were still going on with three more processors for the settlement of R311 crore. So, the failure to keep payment commitments by the eight processors made the matter worse for the NSEL, which had to resort to a loan from its owner Financial Technologies (India) to pay some investors, mainly the smaller ones.
As of September 4, the exchange declared a pay-out of R120.10 collected from its members against the required pay-in of R524.16 crore.
Doesn’t handle NSEL stocks anymore, says NBHC. The National Bulk Handling Corporation (NBHC), another company promoted by NSEL owner FTIL, said on Thursday it managed stocks at five warehouses of “pre-stored commodities for NSEL only during June and July this year in its history and also no warehouse receipts were