NSEL defaults again, to pay Rs 9 cr

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The troubled National Spot Exchange, promoted by Financial Technologies, defaulted in settling trade for the fifteenth time in a row.

The exchange will now disburse Rs 9 crore as settlement against Rs 175 crore it promised to pay while it shut operations in August.

Of the 24 companies with outstanding positions, Topworth Steels and Power was the only company that kept its payment schedule.

The amount will now be distributed proportionately to investors with outstanding positions in the exchange. Anand Rathi will receive the highest amount of Rs 1 crore in the 15{+t}{+h} settlement followed by India Infoline Commodities and Geojit Comtrade, who will get Rs 50 lakh each.

Systematix Commodities and Motilal Oswal Commodities will receive Rs 45 lakh and Rs 43 lakh each.

NSEL said it is holding back Rs 14.57 crore payable to Indian Bullion Market Association members as per commodity market regulator Forward Markets Commission directive. The amount would be retained in the NSEL escrow account until further instructions, it said.

Further, the exchange has received Rs 11 crore from Mohan India, one of the defaulters. The amount is credited to the escrow account of NSEL and shall be disbursed after obtaining necessary approval from the relevant authorities, it added.

NSEL has so far settled trade worth Rs 235 crore against Rs 5,600 crore it has to settle.

Announcing a settlement calendar in August, the commodity exchange promised to clear up all the dues in 30 weeks by paying Rs 174.72 crore in 20 weeks followed by Rs 86.02 crore in next 10 weeks.

The exchange raised a bridge loan of Rs 177.23 crore from its promoter Financial Technologies to make payments to small investors with exposure of less than Rs 10 lakh.
 

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