Talks between investors, FT likely to resume soon

Shah had made an offer of Rs 1111 crore to investors and brokers two weeks ago for settling all issues: Sources

The Financial Technologies India Limited (FTIL) is all set to restart settlement talks with investors and brokers of the National Spot Exchange Ltd (NSEL) next week. Talks were derailed two weeks ago over the issue of terms of settlement.

According to sources, Jignesh Shah, former director of NSEL, had made an offer of Rs 1,111 crore to investors and brokers two weeks ago for settling all issues and withdrawing cases filed against the FT Group and board of directors of various group entities in various courts.  The offer was agreed upon by the investors, but was rejected by brokers. They fear investors and brokers together lost about Rs 5,574 crore in the NSEL.

“We are fed up now running after the court. It is very difficult to chase every small and large investors. Hence, let us break the ice somewhere next week,” said Ketan Shah, who filed writ petition in the Bombay HC over a month ago pledging immediate halt of financial settlement and evenly distribution of money to all investors after monetising commodities under e-series contracts.

A FT Group representative in the court said, “We will speak to the person/s responsible for the settlement for early resumption in talks.”

The investors had said the gap could have been bridged with the money that could be raised by selling of attached properties of borrowers. The police had already said market value of attached properties could be Rs 4,000 crore or more.