NSEL: Half of IIFL clients have received at least part-payment, says Jain

Around half of India Infoline Finance Ltd’s (IIFL) clients who had an exposure to the National Spot Exchange Ltd’s (NSEL) Rs 5,500-crore payment crisis, have received at least a part payment, according to Nirmal Jain, founder and chairman of the company.

There were 1,300-1,400 investors from among IIFL’s clients who had invested in NSEL. Around half of these have got some of their money back as their exposure was Rs 10 lakh or below, following a decision to pay money to the smaller investors first.

The exchange had on August 27 announced 608 small investors, who were to receive up to Rs 2 lakh would  receive all their money. It had also said 6,380 investors who were to receive amounts above Rs 2 lakh and up to Rs 10 lakh were to receive 50 per cent of their money.

“NSEL has also made necessary communication to the bank, for the disbursement of payout under the settlement plan due on August 27 of Rs 12.60 crore, through the escrow account, out of the monies recovered from the members,” said the exchange notification.

The total exposure of India Infoline clients to the NSEL issues is said to have been around Rs 300 crore, mostly high net worth individuals who were attracted by double-digit returns..