NSEL investors hope to recover Rs 4,000 cr from top 5 borrowers

Sep 17 2013, 21:44 IST
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Investors forum is also approaching Economic Offence Wing for legal action against NSEL promoters. Reuters Investors forum is also approaching Economic Offence Wing for legal action against NSEL promoters. Reuters
SummaryInvestors met Arvind Mayaram and sought stringent action against those not making payments.

NSEL Investors Forum today said it expects to recover Rs 4,000 crore from top five borrowers of the exchange.

National Spot Exchange Ltd (NSEL), promoted by Jignesh Shah-led Financial Technologies India Ltd (FTIL), is facing the problem of settling Rs 5,500 crore dues of 148 members, representing thousands of investors, after it suspended trade on July 31 on the government's direction.

"With the help of NSEL and government agencies, we expect to recover around Rs 4,000 crore, which is 65-70 per cent of the total outstanding of Rs 5,500 crore from the top five borrowers of the exchange," NSEL Investor Forum Chairman Sharad Saraf told reporters here.

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We have found out that Rs 5,500 crore is in the system only with NSEL, its promoters company Financial Technologies and with its 24 borrowers, Saraf said.

Investors forum members yesterday met Economic Affairs Secretary Arvind Mayaram and sought that investigative agencies should take stringent action against those members who are not making payments.

"We raised our concerns with Mayaram and demanded to direct investigative agencies to go after borrowers of NSEL," Saraf said.

The investors forum is also approaching Economic Offence Wing (EOW) of the Mumbai Police for legal action against the NSEL promoters and 24 defaulters of the exchange.

"We are lodging formal complaint with EOW on Thursday to take appropriate legal action, including criminal action against the promoters, 24 defaulters of the exchange for recovery of investor funds of over Rs 5,500 crore," Saraf said.

Sebi attempts to ring-fence MCX-SX from NSEL crisis

The Mumbai police has already formed a special investigation team (SIT), headed by a DCP, to conduct a preliminary inquiry into the Rs 5,500-crore NSEL payment default crisis after some investors lodged a complaint against the exchange and its office-bearers.

"A special team has been formed to look into the complaints against the NSEL," Joint Police Commissioner Himanshu Roy had said without divulging details related to the progress of preliminary inquiry.

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