You are here: Home » Markets » News
Business Standard

NSEL 3rd payout; gathers Rs 5.97 cr so far against Rs 174.7 cr

Out of the 24 members only four have paid including biggest defaulter NK Proteins

Press Trust of India  |  New Delhi 

Jignesh Shah
Jignesh Shah

The troubled National Spot Exchange Ltd (NSEL) has so far got Rs 5.97 crore from members, including biggest defaulter NK Proteins, against the third scheduled payout of Rs 174.72 crore due on Tuesday.

Of the 24 members, only four have paid a total of Rs 5.97 crore so far (Rs 80 lakh was paid on August 28, Rs 17 lakh on August 29, Rs 5 crore on August 30), the exchange said in a release.

The exchange did not get any amount from members on August 31.

Releasing pay-in obligations of 39 clients through 24 members, NSEL on August 29 had said Ahmedabad-based NK Proteins was the biggest defaulter with net dues of around Rs 970 crore at members level.

Earlier, crisis-ridden NSEL had announced a seven-month plan to settle the dues to investors.

The beleaguered bourse has already defaulted in the last two pay-outs as it was able to gather only Rs 92.73 crore in the first pay-out and Rs 12.05 crore in the second pay-out, out of the scheduled Rs 174.72 crore each.

However, the exchange has already availed a bridge loan of Rs 177.23 crore from its promoter Financial Technologies (FTIL) to make payments on priority basis to small investors.

There are 24 buyers/members which have to pay Rs 5,600 crore to the spot exchange for settling dues to investors.

Meanwhile, NSEL declared in total 19 members (buyers) who failed to pay their dues on in last two payouts as 'defaulters', following directives from the commodity market regulator Forwards Market Commission (FMC).

NSEL, promoted by Jignesh Shah-led FTIL, is facing the problem of settling Rs 5,600 crore dues to 148 embers/brokers, representing 13,000 investor clients, after it suspended trade on July 31 on the government direction.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, September 01 2013. 14:37 IST