‘Government should take over NSEL’: Brokers’ Forum
Moneylife Digital Team 13 August 2013

MCX and FT have financial obligation claim the brokers and threaten to move court if Forward Markets Commission does not guarantee payment


 

Following the payment crisis in the National Spot Exchange Ltd (NSEL), brokers of the exchange have united and demanded the government should take over the spot exchange. They insist that the commodity exchange has the financial obligation on payments. They have also threatened that they will move court if FMC (Forward Market Commission) cannot give guarantee on repayment. Nirmal Jain (chairman, India Infoline) said that not one rupee has been received in the last 12 days. NSEL can pay only Rs500 crore out of Rs5,500 crore, which means a big hit for brokers, investors and farmers of Rs5,000 crore.

 

Commodity Participants Association of India along with Association of National Exchanges Members of India and BSE Brokers Forum said some clients have expressed concern on quantity and quality of commodities lying in warehouses controlled by National Spot Exchange. The organisations have formed a joint forum. It is NSEL’s responsibility to verify stocks.

 

The Investors’ Grievances Forum (IGF, headed by Kirit Somaiya) has filed a complaint with the economic offences wing of the Mumbai Police against embattled National Spot Exchange Ltd. Somaiya asked the police to register a first information report (FIR) that accuses NSEL of cheating, fraud, forgery with the victims being 17,000 small farmers/investors.

 

Brokers have even demanded that the government should take over Financial Technologies (FT) as well until the NSEL mess is cleaned up, as the promoters are the same.

Comments
sathyacumaran
8 years ago
sathyacumaran
operational head india
singpore media and channel group

if the broking house itself been cheated by NSEL so long it was the broking house who were cheating the investors like me as rightly said by normal jain of india infoline its the same nirmal jain who had cheated me and for which we are running from pillar to post for justice when it pinches his purse he rakes this issue so long he had been cheating his investors is not known they have taken as right now they themselves become victim that is stage where we say that there is GOD who is watching all our activity after reading this may i kindly request Shir Nirmal jain of india infoline to do justice in solving my case as earnest appeal
Harish
8 years ago
This Broking firm crooks wants monopoly of NSE, May be the crisis was creation of this crooks.
Vinayak Bhimarao Mudholkar
8 years ago
If somebody had bought gold(e series) why he should take delivery & pay VAT?....For future cultural needs should one buy physical gold instead of paper gold?
R Balakrishnan
8 years ago
The govt should not do anything. Punish the wrong doer. The big brokers are to be blamed too. They made fancy poppy cock presentations to investors and made a killing on brokerage and commission. Let them face the music too. 17,000 small investors had no business to venture in to something even experts found it tough to digest. And brokers who sold the product on 2% margin surely knew better.
Srinivas
Replied to R Balakrishnan comment 8 years ago
I agree entirely with you sir - those who live by the sword should know that they can die by the sword. Why should anyone bail the brokers out ? Let us not set a precedent like the US did - poor taxpayer's funds goes to underwrite their losses.

When they made money till last month, did they share it with us ?

And when they are forced to take delivery of stocks of say sugar or rice or whatever, and don't know what to do with it, they will have to sell it - commodity prices will fall, which is again good for the common man.
Vinayak Bhimarao Mudholkar
Replied to R Balakrishnan comment 8 years ago
You are right sir.... The punishment/penalty must not be miniscule & the justice should be fast enough.
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