NSEL asks banks to disburse Rs 11 cr received from Mohan India

Crisis-ridden NSEL today asked banks to disburse Rs 11 crore, the amount it has received from Mohan India as per the settlement agreement.

 

The exchange had received permission from the Forward Markets Commission (FMC) last week to disburse Rs 11 crore received from its defaulting member.

 

The amount was received from Mohan India Group as part of the settlement agreement. The amount has been lying in the NSEL escrow account since November 2, 2013.

 

NSEL advised the banks to disburse Rs 11 crore received from Mohan India, after receiving permission from the FMC, the exchange said in a statement.

 

Delhi-based member Mohan India Ltd had agreed to pay to the exchange about Rs 771 crore in final settlement over the next one year. The firm has made a down payment of Rs 11 crore and the balance will be paid over the next one year.

 

The firm's total outstanding is Rs 950 crore.

 

NSEL has also moved the Bombay High Court to modify its earlier order of October 7, 2013, for ensuring speedy implementation of settlement agreements with defaulting members, including Mohan India Group.

 

So far, the NSEL has defaulted 18 times. It has so far settled about Rs 263.50 crore against about Rs 5,600 crore dues to 13,000 investors.

 

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.