The National Spot Exchange (NSEL) on Wednesday announced its settlement plan, running into seven months that would see the bourse clearing dues totalling Rs 5,574.31 crore. However, within minutes of the schedule being unveiled, large brokers expressed their dissatisfaction.
The settlements schedule will now be finalised after receiving public feedback, the Forwards Market Commission (FMC) said. “We have told NSEL to upload its settlement plan on its website and take public feedback. All stakeholders can give their comment. Only after factoring in the public feedback will we form an opinion,” said FMC chairman Ramesh Abhishek. However, he did not clarify if there’s a deadline for the feedback.
“We have told them the plan needs to be compressed as much as possible. We are not going to approve it now.... We want people to examine it properly,” he said, adding the FMC “can ask NSEL to make some changes if required but the changes will be dependent on the public feedback.”
Asked if the FMC is conducting an independent inquiry into allegations of NSEL giving incorrect information on the quantum of commodities, Abhishek said the FMC had sent a report to the government and was awaiting a response.
Starting August 16, 2013 till mid-March 2014, there will be pay-ins every Friday while payouts, to the investors, will take place every subsequent Tuesday. NSEL said dues of Rs 4,200 crore would be settled over a period of 30 weeks. In the first 20 weeks, there will be payouts to the tune of Rs 174.72 crore.
This would be followed by Rs 86 crore of settlement over the next 10 weeks. NSEL also said that during the period of 30 weeks, the remaining dues of Rs 1219.71 crore would be settled through the sale of commodities, fixed assets and land by some members.
“The authenticity of the borrowers and that of the value of physical commodities with NSEL still needs to be proved by the exchange given that Rs 1,220 crore or more than 20% of the total dues are to be settled using the sale of physical commodities and fixed