NSEL settles e-gold contracts; makes payment of Rs 154.80 cr

Crisis-hit NSEL today said it has completed the financial closure of e-gold contracts by making payment of Rs 154.80 crore to over 23,000 investors.
"With this payment of e-Gold Rs 14.67 crore, the total amount so realised for e-Gold stands at Rs 154.80 crore at an average rate of Rs 2909.67 per unit of e-Gold," it said in a statement.
Initial remittance comprised out of sale of 89.71 per cent of gold, and the sale proceeds of more than Rs 140 crore was directly credited to the bank accounts of unit holders on May 22, 2014.
In the wake of the Rs 5,600 crore payment default at FTIL promoted National Spot Exchange Ltd (NSEL), government had in August last year banned trading in e-series contracts in metals.

In March this year, regulator Forward Markets Commission (FMC) had given permission to NSEL for re-materialisation and financial close-out of e-series contracts.
The process of redemption of e-Series from April 12, 2014 beginning with the re-materialisation of e-Series.
NSEL MD and CEO Saji Cherian said: "We are happy that we have been able to benefit more than 23,000 investors of e-series by completing financial closure of e-Gold involving payout of total Rs 154.80 crore".
NSEL had introduced e-series contracts in commodities for retail investors in 2010. These are investment products that enable investors to buy and sell commodities in demat form and hold them in their demat account.