Govt puts onus of NSEL's settlement process on promoter

Also says priority should be given to small investors during the settlement

The government has asked Jignesh Shah, head of Financial Technologies that is the promoter of crisis- ridden National Spot Exchange Ltd (NSEL), to take complete responsibility for ensuring the settlement of about Rs 5,600 crore due to investors.

The government also said priority should be given to small investors during the settlement, being overseen by the Forward Markets Commission (FMC).

Financial Technologies India Ltd (FTIL has a 99 per cent stake in NSEL. The spot commodities exchange has to settle the dues after it suspended trading in all contracts recently on directions from the government.

“We are watching the situation. FMC has not yet submitted the report. We have to know where the stocks are. Primarily, we are putting the responsibility of settlement on Jignesh Shah,” Consumer Affairs Minister K V Thomas said.

“He (Shah) has to be responsible,” Thomas said, adding this was communicated to Shah at a recent meeting.

NSEL has said it will present the settlement plan by August 14 and had set up a four-member panel to oversee the process.

Reacting to the minister’s comment, NSEL said in an emailed statement: “Jignesh Shah had met the minister on behalf of the NSEL board to apprise him on the formation of the ‘oversight committee’ and the other steps taken by the NSEL board. In this context, the minister has advised Shah to ensure the due process of settlement is followed according to the regulations and under the supervision of FMC.”