NSEL e-series settlement on hold for a day

Bombay High Court in a case filed by investors had advised not to make any pay-outs or give delivery in physical form of the commodities

Following the directions of the Bombay High Court, the National Spot Exchange Ltd (NSEL) has put on hold the proposed settlement of e-series contracts for a day. While considering a case filed by investors, the high court had earlier restricted NSEL from making any pay-outs or giving delivery in physical form of the commodities, including gold and silver in respect of e-series contracts till October 4, 2013.

For today and tomorrow (4 October) the Exchange will not derive and disclose any redemption price of E-Gold and E-Silver on its website. The communication by the exchange in the late evening said that Units that have been transferred to NSEL pay-in account through DO shall be transferred back to the respective clearing member’s pool account.

The high court will give final directive on Friday, based on which the new procedure will be announced by the exchange.