Agri Business

NSEL opens escrow account to settle investor dues

Our Bureau Mumbai | Updated on March 12, 2018 Published on August 12, 2013

Weeks after it stopped trading, the National Spot Exchange Limited (NSEL) has opened an escrow account to settle the dues of over 13,000 investors. The exchange has assured both investor and the Forward Markets Commission that it would come out with payment schedule by August 14.

Earlier, the Commission directed the exchange to open a separate bank account so that it could track the amount being deposited and payment being made to the investors. The exchange has to settle trade worth Rs 5,600 crore and is in the process of discussing the same with investors.

Small investors, with an exposure of less that Rs 10 lakh, would be settled on a priority basis. By doing so, the exchange will clear nearly 50 per cent of 13,000 investors dues.

The exchange has stated that eight members have agreed to pay Rs 2,181 crore as per due date or even earlier, while 13 others have consented to remit five per cent of their dues every week totalling to Rs 3,107 crore.

It is still negotiating to recover Rs 311 crore from Namdhari Food International, Namdhari Rice and General Mills and Lotus Refineries.

NSEL has claimed that it has commodities worth Rs 6,032 crore at its warehouse against the settlement of Rs 5,600 crore that it has to make.

The Commission, which is overseeing the settlement process, has sought Government agency assistance to check the quantity and quality of goods stored at the exchange-accredited warehouses.

NSEL has also discontinued trade in e-series contract of metals and has urged investors to submit their application for taking delivery. Investors have the option of holding their position in demand form, if they do not want to take delivery of the metal.

Published on August 12, 2013
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