NSEL defaults on its 2nd consecutive payment obligation, takes loan to pay small investors

NSEL defaults on its 2nd consecutive payment obligation
National Spot Exchange (NSEL) defaulted for the second consecutive time in meeting its weekly payment obligation of Rs 174 crore. Payout yesterday was about Rs 12.60 crore as against Rs 174 crore due, reported PTI.

As per the schedule drawn, the exchange was to pay investors every week for 20 weeks beginning August 20, said media reports.

Forward Marketing Commission (FMC) Chairman Ramesh Abhishek did not say what action it will take against NSEL but said the FTIL funding to NSEL was outside the the payment schedule.

Together with Rs 12.60 crore in borrowers had deposited in the escrow account, NSEL has Rs 190 crore for payments to 7,000 investors.

NSEL in a statement said it will pay 100 per cent amount to 608 investors who were to receive amounts up to Rs 2 lakh as on July 31 this year.

These investors will receive the remaining amount proportionately as per the settlement plan, it added.

The announcement has came on the second day of the pay-out when exchange is supposed to pay Rs 174.02 crore.

"NSEL has availed a bridge loan from FTIl, the promoter company to make these payments aggregating Rs 177.23 crore," NSEL statement said.

"NSEL is actively pursuing recovery of the dues from the members with outstanding dues. This includes initiation of civil and criminal proceedings against the defaulting members besides taking actions under the Rules and Bye-laws of the NSEL," the statement added.

Dion Global Solutions Ltd.

Read more about: nsel, fmc, ftil
Story first published: Wednesday, August 28, 2013, 9:10 [IST]
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