NSEL completes financial closure of e-series gold contracts
The firm said it has completed the financial closure with a total payout of Rs.154.80 crore to 23,267 investors
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E-series contracts are those in which retail investors can buy and sell commodities in dematerialized form.
According to a release issued by the exchange, the final payment of Rs.14.67 crore, comprising 10.29% of gold contracts, was made to unit holders on 23 June. With this, the financial closure of e-series gold contracts has been completed.
The exchange, which has been embroiled in a settlement crisis, started the redemption process for e-series contracts from 12 April and more than 85kg of demat gold—what it calls e-gold—was rematerialized and delivered to unit holders, out of 617.5kg available for redemption, the release said.
The exchange has also made remittance towards 70.48% of e-series silver contracts amounting to Rs.97.3 crore to unit holders as on 5 June 2014. The process of financial closure comprising remaining 29.52% of e-silver, platinum and other base metals, together amounting to about Rs.55 crore, will be completed soon, the release said.
“We are happy that we have been able to benefit more than 23,000 investors of e-series by completing financial closure of e-gold involving payout of total Rs.154.80 crore,” said Saji Cherian, managing director and chief executive officer, NSEL.
The initial remittance in May comprised sale of 89.7% of gold, and the sale proceeds of more than Rs.140 crore was directly credited to the bank accounts of unit holders on 22 May. The total payment of Rs.154.80 crore was done at an average rate of Rs.2,909.67 per unit of e-gold.
Apart from the e-series contracts, NSEL, which is engulfed in a Rs.5,574.35-crore payments crisis, has been able to recover only a minor portion of the outstanding dues from defaulters.
According to Uttam Prakash Agarwal, director of NSEL, the exchange has been able to recover Rs.354 crore till 31 May and a bridge loan of Rs.179 crore was taken from parent entity Financial Technologies India Ltd. The total of Rs.533 crore has helped the exchange clear up to 50% of its settlement liability to about 7,000 retail investors.
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