OPEN APP
Home >Market >Stock-market-news >Brokers yet to furnish complete disbursement details: NSEL

Mumbai: The National Spot Exchange Ltd (NSEL), which had sought information from broker members about the disbursement of 179 crore to small investors in August 2013, said it has not yet received the details from many members.

“… the exchange has till date received responses from only 133 brokers as against 200 who received the payout. These brokers account for 3,586 clients and a sum of 92 crore," said a statement issued by NSEL on Wednesday.

On 27 August 2013, Financial Technologies India Ltd (FTIL), which owns 99.99% of NSEL, extended a bridge loan to the spot exchange to settle and clear the dues of trading clients with dues up to 2 lakh; and 50% of those with dues above 2 lakh and less than 10 lakh.

NSEL is facing a 5,574.34 crore payment fraud.

According to the NSEL statement, the exchange issued two circulars—one each in December and January—to members seeking information related to disbursements but not all members responded with details.

“This is a process by which we want to establish the genuineness of investors and to know that the money has gone to the deserving investors," Prakash Chaturvedi, joint managing director, NSEL, told reporters on Wednesday.

Brokers and investor groups have consistently claimed around 13,000 investors were affected by the fraud.

The 5,574.34 crore payment fraud at NSEL came to light on 31 July 2013 when the exchange suspended trading in all but its e-series contracts. These, too, were suspended a week later. On 14 August 2013, NSEL proposed a payout plan, but it has been unable to stick to the schedule and has not made a single successful payout.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Close
×
Edit Profile
My ReadsRedeem a Gift CardLogout