The National Spot Exchange Ltd (NSEL), which faces a risk of default after suspending trade, on Monday, said it has formed an independent committee to advise and monitor settlement of trade amounting to about Rs 5,500 crore.
Mumbai: Staring at a payment default, NSEL Monday said it has formed an independent panel to advise and monitor the process for settling Rs 5,600 crore dues and wanted strict action against brokers not cooperating with the payment plan.
Meanwhile, the government said that Forward Markets Commission, which regulates commodity trading, will be empowered to oversee the NSEL settlement.
NSEL promoter Financial Technologies' CMD Jignesh Shah said, "We have constituted an independent committee of eminent persons for advising and monitoring the five-month payout process in an orderly manner and we will take strict action against members not cooperating with the settlement plan."
"All members, for example plant-owners, who will not cooperate in payout process...We have to report to FMC and strict action should be taken so that investors get money."
On payment schedule, he said the plan should come by August 14. "The calendar for payout will be declared."
Shah was interacting with the media in a hurriedly called press meet, but he dodged most of the questions saying National Spot Exchange (NSEL) CEO will answer them.
NSEL Chief Executive Anjani Sinha, who was supposed to address the media jointly with Shah, could not make it as he was reportedly meeting with the FMC brass.
Members of the independent panel include former Company Law Board chairman Sharad Upasani, former Bombay High Court judge R J Kochar, former Sebi and LIC chief G N Bajpai, and D Sivanandan, former DGP of Maharashtra.
A major crisis erupted at NSEL after it suspended most trades on its platform on July 31, raising concerns of payment default.
Shah said under the proposed payment schedule, members will repay the dues in phases over the next five months, with delayed payments attracting a 16 percent interest. The settlement will be fully in cash, and none of the physical stocks will be handed over to investors to whom money is due.