Markets

NSEL defaults again, to pay Rs 20 cr in 20th settlement cycle

| Updated on: Jan 01, 2014

The embattled National Spot Exchange will pay Rs 20.40 crore against the promised Rs 175 crore in the 20th settlement cycle.

Yathuri Associates paid the highest amount of Rs 15 crore in this settlement, against Rs 406 crore it owes the exchange. Mohan India and Swastik Overseas Corporation paid Rs 4.40 crore and Rs 1 crore respectively, against their outstanding obligation of Rs 558 crore and Rs 95 crore.

Meanwhile, the Forward Markets Commission (FMC) on Tuesday approved disbursement of Rs 10.06 crore as payment due to members of the Indian Bullion Market Association (IBMA), a subsidiary of NSEL, directly by the exchange. The settlement was withheld by the exchange as per FMC order, after IBMA instructed the exchange to disburse the amount directly to its members.

IBMA members will now receive their due from the 15th to 19th settlement cycle, including that of Mohan India, directly from NSEL.

Further, the FMC has also allowed all future payments to IBMA members as per NSEL settlement cycle.

In its order, FMC has said that the FMC directive to disburse the settlement dues of the members and clients of IBMA directly from NSEL escrow account should not in any way be construed as absolving NSEL or the IBMA of any of their liabilities arising out of the agreements between them and among their members that are existing, or may arise in the future.

suresh.i@thehindu.co.in

Published on January 01, 2014

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