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.
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