NSEL staring at 3rd default; gets only R10.3 cr for payout

z Two working groups to submit NSEL reports to DEA secretary today.

The National Spot Exchange Ltd NSEL,which is struggling to settle Rs 5,600 crore dues of investors,is heading for the third straight default with the exchange receiving only Rs 10.32 crore so far against Rs 174.72 crore payable to investors on Tuesday.

NSEL said five members out of 24 have paid in Rs 10.32 crore as on Monday to the bourse. Were exploring all the options including criminal and civil actions. We are also waiting for the Mayaram panel to come out with the report before taking any action. We dont want to rush to the courts with cases as court litigation will go on for years. We were also in talks with NSEL management, said NSEL Investors Forums Alok Churiwala.

The money has to be in the system. Somebody has to find out the money trail, he said. The two working groups set up to look into violations by NSEL are likely to submit their reports to the department of economic affairs secretary Arvind Mayaram on Tuesday.

Meanwhile,with SGS,the Swiss firm hired by the NSEL discovering that warehouses that it inspected were not holding the required quantity of stocks,the Forward Markets Commission FMC has asked all commodity exchanges to register all accredited warehouses with the Warehousing Development and Regulatory Authority WDRA mandatorily by December 31,2013.

In a circular,the FMC said that exchanges should accredit new warehouses henceforth only after registration and accreditation by the WDRA.

The regulator asked exchange to frame norms to be prescribed for the eligibility of warehouse service providers with special emphasis on the norms of capitalisation and financial adequacy,minimum infrastructure capacity which the service provider must comply with. MDs and CEOs of the exchange may send proposals,feedback and comments by September 10,FMC said.