NSEL defaults on 3rd pay-out: Members pay Rs 15.4cr Vs Rs 174cr
Crisis-hit National Spot Exchange Ltd (NSEL) Tuesday defaulted in payment of Rs 174.72 crore to investors as it could pay only Rs 15.37 crore, the third consecutive failure to meet their obligations.
New Delhi: Crisis-hit National Spot Exchange Ltd (NSEL) Tuesday defaulted in payment of Rs 174.72 crore to investors as it could pay only Rs 15.37 crore, the third consecutive failure to meet their obligations.
The beleaguered NSEL has already defaulted in the first two pay-outs as it received only Rs 92.73 crore from members in the first pay-out and Rs 12.05 crore in the second pay-out, out of the scheduled Rs 174.72 crore each.
"The total amount being disbursed today in a proportionate manner is Rs 15,36,99,000. ...The exchange has given necessary communication to banks for disbursement of the third pay out today," the NSEL said in a statement.
Five members out of 24 members have paid in Rs 15.37 crore. The rest 19 members have been declared defaulters and notices have been issued to 14 defaulters for bouncing of cheques for settlement, it said.
The five members who paid include Topworth Steels and Power Pvt Ltd (Rs 9.10 crore), N K Proteins (Rs 5 crore), Metkore Alloys & Industries (Rs 50 lakh), Sankhya Investments (Rs 37 lakh), Aashtha Minmet India (Rs 15 lakh) and MSR Food Processing (Rs 10 lakh), it said.
Members who defaulted on payment were ARK Imports, Lotus Refineries, Mohan India, Loil Continental Food, Namdhari Food Interntional, NCS Sugars, Spin Cot Textiles, Tavishi Enterprises, Vimladevi Agrotech, Yathuri Associates, PD Agroprocessors, Shree Radhey Trading, Juggernaut Projects and among others, it added.
On recovery from these defaulting members, NSEL said it would do so by selling commodities lying in the warehouses, sale of assets offered by these members or by payments made by the defaulting members through their own resources.
However, the exchange made it clear that the payments from the defaulting members will not be in a predefined schedule and would depend on actual receipts of payments based on the above process. The payment of the five non-defaulting members will continue as per the schedule disclosed earlier.
Experts said that it need to be seen if the exchange will again take loan from its promoter Financial Technologies (FTIL) to make payments. NSEL had last week availed a bridge loan of Rs 177.23 crore from FTIL to make payments on priority basis to small investors.
NSEL, promoted by Jignesh Shah-led FTIL, is facing the problem of settling Rs 5,600 crore dues to 148 members after it suspended trade on July 31 as per government direction.
The bourse plans to settle the entire due amount by paying back investors Rs 174.72 crore every week in seven months time.
Meanwhile, two working groups, set up to look into violations by NSEL in the payment crisis on the commodity exchange, are likely to submit their reports to the Department of Economic Affairs by September 12.