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Mumbai: A bitter battle is brewing between the National Spot Exchange Ltd (NSEL) and a group of investors involved in the 5,574.35-crore payments crisis at the exchange with the latter requesting the high court committee (HCC) to restrain the bourse from activities related to collecting client data.

NSEL Aggrieved and Recovery Association (NAARA), which claims the support of nearly 1,500 entities stuck in the payments crisis, has written a letter to the HCC alleging that NSEL’s ongoing data collection exercise is an attempt to discredit the investors and delay the entire recovery process.

HCC, which was set up in September 2014 under the chairmanship of (Retd) justice V.C. Daga, has been assigned the role of establishing the liability on the defaulters and to streamline the payment to trading clients.

“If it is not to distract from their ability to recover monies, if it is not to help its parent, FTIL (Financial Technologies India Ltd) to manipulate and use this data in the matter related to their merger, if it is not to surreptitiously bring the creditors’ claims into some kind of legal dispute, what else should their exercise be seen as?" says the letter written by the investor group.

Mint has a copy of the letter. An email sent to NSEL seeking a response to the allegations made by NAARA remained unanswered.

On Monday, NSEL issued a statement that only 45 of the around 13,000 investors have verified their claims and that these add up to only 12 crore. However, the statement was soon withdrawn without assigning a reason. The brokers and investors have consistently claimed around 13,000 of them were affected by the fraud.

The exchange, under the guidance of a Bombay high court panel, issued a note on 9 February asking all affected parties to provide details by 25 February.

The investor group has asked the panel to direct NSEL to submit an undertaking that the data has not been shared with its promoter entity FTIL. It also wants the HCC to pass strictures against NSEL for “collating such data that was never permitted."

The investor group has also questioned the authority of NSEL to seek details related to the source of funds and also the manner in which investors have treated the income or losses in their books of accounts.

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