Indian Council of Investors files PIL against NSEL

Business

oi-Staff

By Super

Published: Saturday, August 17, 2013, 10:39 [IST]

Mumbai: City-based Indian Council of Investors, an investors' representative body, on Friday filed a public interest litigation against the beleaguered National Spot Exchange Limited (NSEL) in the Bombay High Court.

The PIL was filed as NSEL failed to settle trades in commodities market, association said in a statement here. It could come up for hearing next week.

PIL seeks that commodity market regulator Forward Market Commission or other authorities should take immediate custody and control of commodities stated to be lying in the NSEL warehouses. Commodities in warehouses should be treated as collateral against the borrowings, the Council has demanded.

Another demand is that Ministry of Consumer Affairs, Ministry of Finance, FMC and SEBI should disclose market value of commodities lying in NSEL warehouses; and FMC or relevant authorities should take charge of day to day administration of NSEL.

Meanwhile, FMC chairman Ramesh Abhishek today met NSEL Investors Forum and assured that it will take all possible steps to smoothen the settlement process which will start from Tuesday.

Abhishek said FMC had submitted reports to Consumer Affairs Ministry and it will initiate required actions.

"FMC assured us to take adequate departmental measures to ensure investors' dues," said Sharad Kumar Saraf, chairman, NSEL Investors Forum.

Saraf also said Forum members will meet Finance Secretary and Consumer Affairs Secretary on Monday with the demand of action against exchange authorities. "We have also discussed with our lawyers. We will wait until Tuesday to see the first tranche of payment to take a final decision forward," he said.

PTI