Commodities

Brokers confirm NSEL payout of only ₹92 crore in 2013

Our Bureau Mumbai | Updated on January 24, 2018

Exchange disputes brokers’ claims





In response to the proof of payment sought from brokers, the National Spot Exchange has received confirmation on payment of ₹92 crore against ₹179 crore distributed to investors in 2013.

Of the 200 brokers, who were involved in the distribution of money, only 133 responded to the exchange’s call, said S Rajendran, Independent Non-Executive Director, NSEL.

The embattled exchange, which failed to settle ₹5,600 crore trade entered on its platform, told brokers to provide documentary evidence to prove that the special payout of ₹179 crore was distributed to investors.

In August, 2013 NSEL made the special payout, without prejudice, to settle dues of those trading clients with outstanding up to ₹2 lakh. It paid 50 per cent of the outstanding for those investors with exposure between ₹2 lakh and ₹10 lakh.

NSEL had set March 13 as the deadline for brokers to send in the proof of payment.

Rajendran said the recovery of money is going to be a lengthy process as even a public sector company Nafed (National Agricultural Cooperative Marketing Federation of India) with an established liability of ₹100 crore is refusing to pay.

Asked why the exchange waited for more than one year to know the veracity of its clients, he said the contractual obligation of the exchange is limited to members and it is their duty to maintain proper KYC of the clients. “Just after the crisis, we had twice asked the members to submit the KYC of clients but they have challenged our rights to seek such information. Now, the exchange is within its right to know whether the money it paid has reached the right clients, he said.

Challenging the brokers claim that there are 13,000 investors waiting for settlement, Rajendran said the PAN card proof that the exchange is having is just an ID, there is no way it can be cross checked by the exchange.

In a verification exercise conducted last month, NSEL found only 1,938 investors registered their dues amounting to ₹550 crore. This was in sharp variation to the claim of about 13,000 investors supposed to have lost ₹5,600 crore.

Published on March 18, 2015

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor