NSEL defaults 14th time; pays Rs 6.10 cr against Rs 174 cr

Crisis-ridden bourse NSEL defaulted for the 14th straight time today as it could pay only Rs 6.10 crore to investors against a scheduled payment amount of Rs 174.72 crore.

 

With today's pay-out, NSEL settled about Rs 226 crore against Rs 5,600 crore dues to 13,000 investors.

 

National Spot Exchange Ltd (NSEL), which is engulfed in a Rs 5,600-crore payment crisis, had previously defaulted 13 times. On its seventh pay-out date and thirteenth pay-out date, the bourse was unable to make any payment.

 

"The total amount being disbursed today is Rs 6.10 crore," a NSEL spokesperson said.

 

Topworth Steels and Power Pvt Ltd has made a payment of Rs 6.10 crore to the exchange, while 23 of them have defaulted, according to the NSEL data.

 

The exchange has also received Rs 11 crore from the defaulting member Mohan India. The amount has been credited to the escrow account of NSEL and will be disbursed after obtaining necessary approval from the relevant authorities.

 

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 Rs 5,600 crore dues to 148 members after it suspended trade on July 31 on the government direction.

 

The bourse plans to settle the entire 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.