NSEL defaults 18th time, pays Rs 11.5 cr against Rs 174.72 cr

PTI Posted online: Tuesday, Dec 17, 2013 at 0000 hrs
New Delhi : Crisis-ridden bourse NSEL today paid about Rs 11.50 crore against the scheduled payment amount of Rs 174.72 crore, defaulting for the 18th straight time.

With today's pay-out, NSEL has so far settled about Rs 263.50 crore against about Rs 5,600 crore dues to 13,000 investors.

National Spot Exchange Ltd (NSEL), which is engulfed in a payment crisis, had previously defaulted for 17 times. On its seventh pay-out date and thirteenth pay-out date, the spot commodity bourse was unable to make any payment.

"The total amount being disbursed today is around Rs 11.50 crore," an NSEL spokesperson said.

Topworth Steels and Power has made a payment of about Rs 9 crore to the exchange and Rs 1.52 crore has been received from N K proteins, while 23 of other investors have defaulted, he added.

The remaining Rs one crore has been recovered by economic offences wing (EoW), the spokesperson said.

He added that the bourse is still awaiting commodity market regulator Forward Markets Commission's (FMC) approval for disbursement of Rs 11 crore in the escrow account received from defaulting member Mohan India last week.

NSEL had availed a bridge loan of Rs 177.23 crore from its promoter Financial Technologies (FTIL) to make payments on priority basis to small investors. NSEL, promoted by Jignesh Shah-led FTIL, is facing the problem of settling dues to 148 members after it suspended trade on July 31 following a government order.

NSEL's decision to suspend trading followed a Consumer Affairs Ministry directive asking the bourse not to launch any new contracts till further order as it found violations of government norms in trading at NSEL.

The bourse had earlier said it plans to settle all the dues in 30 weeks time, by paying Rs 174.72 crore for first 20 weeks followed by Rs 86.02 crore in next 10 weeks.