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Shares of Financial Technologies (India) Ltd (FTIL) gained 13 per cent on Tuesday as the company filed a proposal to settle the ₹5,600 crore claim made by investors on National Spot Exchange Ltd (NSEL).
According to the unilateral proposal, FTIL wants brokers to bring in ₹500 crore and it will contribute an equal amount, which includes ₹180 crore it has paid last year as loan to settle small investors claim.
The proposal, which was cleared by FTIL board on Tuesday, comes when the government is preparing a final order to merge NSEL with FTIL to protect investors’ interest. The government has also initiated plans to supersede the entire board of the company.
₹164 crore pay outFTIL plans to pay ₹164 crore to settle investors with a claim of ₹2-10 lakh in three-four weeks and 50 per cent of the claim of investors with exposure of ₹10 lakh to ₹1 crore. This will ensure that 7,053 investors, constituting 55 per cent of trading clients, will receive their claim fully, the company said in a statement.
The remaining ₹1,843 crore dues need to be recovered from sale of defaulters properties attached by the Enforcement Directorate and Economic Offence Wing and decrees received by NSEL.
‘Delaying tactics’Amounts realised from attached assets will be allocated to MMTC and PEC against the exposure of ₹321 crore, it said.
Rejecting the deal outright, Alok Churiwala, Vice-Chairman and spokesperson, BSE Brokers Forum, said it is just an eyewash to delay the government’s move to supersede the company’s board and merge NSEL with FTIL.
“The entire scam broke out because the exchange failed in its duty to ensure that commodities that were purchased by investors are stored in the warehouse. It is complete failure on the part of the exchange and now why should the brokers pay,” he said.
Asked on the genuineness of investors, he said why these questions are being raised now when no such doubts raised when they made the first settlement.
Ketan Shah, founding member of NSEL Investors’ Action Group, said the proposal is inequitable and will not be accepted by investors.
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