FMC slams NSEL as first payout falls short

Mumbai: Doubts have arisen over National Spot Exchange Ltd’s (NSEL) ability to stick to the schedule for settling around 5,600 crore of dues arising from its abrupt decision to suspend trading on 31 July, with the exchange falling short in making the first payment on Tuesday, and Mint’s research showing that the 24 members who owe NSEL money lack the financial wherewithal to ante up.

add_main_imageThe 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”.

The Forward Markets Commission (FMC), the commodity futures market regulator, questioned the credibility of NSEL after the exchange fell short of the promised payout by almost half. NSEL, which was to pay out ₹ 174.72 crore on Tuesday according to the settlement calendar, received only ₹ 92.73 crore from members, of which ₹ 92.12 crore will be disbursed to investors on a proportionate basis.NextMAds