Comments
Crisis-ridden NSEL has proposed to initiate default proceedings against Lotus Refineries saying that it owes Rs 252 crore to investors, a claim the company has disputed.
Lotus has written to the commodity market regulator FMC disputing any payment obligation. The Mumbai-based company makes a wide range of edible oil products.
The Forward Markets Commission has, meanwhile, sought comments on the issue from National Spot Exchange Ltd at the earliest.
In a directive to the NSEL, the regulator said it has “received a letter from Lotus Refineries Pvt Ltd disputing their pay-in obligation. The comments of the exchange may be forwarded at the earliest”.
NSEL has proposed initiating default proceedings against the Lotus Refineries for pay-in obligation of Rs 252.56 crore, FMC said.
That apart, the FMC has directed the spot exchange not to make payment of Rs 1,159.55 crore to its related entity Indian Bullion Market Association.
NSEL has 60.88 per cent equity and common directors in the IBMA. The regulator has asked the bourse to provide information about shareholding and directors of IBMA besides details of all trading members and clients attached to this association.
NSEL, promoted by Jignesh Shah-headed Financial Technologies India Ltd (FTIL), was engulfed in a crisis after it suspended trade on July 31, raising concerns about possible default of Rs 5,600 crore due to investors, including 7,000 small investors.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.