The pay-out schedule at the crisis-ridden National Spot Exchange Ltd (NSEL) will take as many as seven months. As per the detailed settlement plan of NSEL,promoted by Jignesh Shahs Financial Technologies,the pay-out for transactions worth Rs 5,574 crore will be completed only by March 11,2014.
There will be pay-in every Friday and pay-out every subsequent Tuesday, said Anjani Sinha,MD & CEO,NSEL. The exchange had halted trading in spot commodities last month following government orders,leading to a payment crisis. NSEL had last week indicated that it would need 3-4 months to complete the settlement formalities.
There are 24 buyers who are required to complete funds pay in obligation to ensure smooth settlement. Therefore,the focus should be on these buyers/processors for realisation of pending dues and on nothing else. I and my management team will solely focus on ensuring smooth settlement as per the schedule annexed herewith, Sinha said.
Sinha said during the settlement period,which will start from August 16,some members will settle their dues of Rs 1,219.71 crore through sale of commodities,fixed assets,land and also through other measures. As the managing director and CEO,I and my management team at the NSEL have been solely and directly responsible for all operations,including screening of parties,warehouse management,risk management and other related company matters. Sinha said in a statement after the NSEL Investor Forum demanded change in the ownership of the bourse and asked the government to take over all collaterals to restore investor confidence.
Commodity Participants Association of India along with Association of National Exchanges Members of India and BSE Brokers Forum have formed a joint forum to press their demands related to payments.
PMO mulls special team to look into issue
New Delhi: The Prime Ministers Office is likely to set up a special team headed by the economic affairs secretary to look into the payment crisis at the National Spot Exchange Ltd (NSEL). Besides economic affairs secretary Arvind Mayaram,the team would comprise officials from the department of consumer affairs and the ministry of corporate affairs,as well as representatives from the RBI and Sebi. According to officials,the mandate of the panel would be to see that there are no systemic threats. NSEL has to settle Rs 5,600 crore of dues after it suspended trading in all contracts recently on directions from the government. ENS