Home >companies >news >NSEL declares 9 buyers as defaulters

Mumbai: The embattled National Spot Exchange Ltd (NSEL) declared nine buyers, who had failed to pay their dues on the first day of settlement on 20 August, as defaulters following directives from the commodity market regulator, Press Trust of India (PTI) reported on Friday.

“Following members have been declared as defaulters as per the rules of the exchange—(a) ARK Imports Pvt. Ltd (b) Loil Overseas Foods Ltd (c) Lotus Refineries Pvt. Ltd (d) NK Proteins Ltd (e) NCS Sugars Ltd (f) Spin Cot Textiles Pvt. Ltd (g) Tavishi Enterprises Pvt. Ltd (h) Vimla Devi Agro Tech Ltd (i) Yathuri Associates," PTI said citing a NSEL circular.

Meanwhile, Lotus Refineries, which has now been declared a defaulter by the exchange, had on Wednesday disputed claims made by the exchange on the money it owes. A Lotus Refineries press release on Wednesday said it had maintained sufficient funds, commodities securities and bank guarantees with the exchange and stocks worth 247.50 crore are “presently being held by the exchange". NSEL had on 6 August claimed that Lotus Refineries held stock worth 247.50 crore and it owed 252.56 crore to the exchange.

The crisis-hit NSEL, a unit of Financial Technologies (India) Ltd (FTIL), had abruptly suspended trading in all one-day forward contracts without assigning a clear reason for doing so.

The commodity exchange failed to collect enough funds from its 24 owing members till Tuesday to meet the first weekly payout of 174.72 crore, and it said on Thursday that none of the 24 members had paid in any money towards the settlement due on 27 August.

The exchange, which received a regulatory warning on Tuesday, said its board had “removed" managing director Anjani Sinha and six senior executives from “existing responsibilities" and launched its own investigation into the crisis. It added that the team would still be “responsible for the recovery".

Two directors resigned from the board of FTIL, the company said in a filing to BSE late night on Thursday.

“Mr R. Devarajan and Mr P.R. Barpande, directors of the company, have resigned from the board and its committees and thus cease to be the directors of the company," the announcement said. It didn’t provide a reason.

FTIL also announced the appointment of N. Balasubramanian as an additional director. He will be a non-executive and independent director.

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