NSEL received Rs11 crore as part of their settlement agreement under which Mohan India had agreed to pay dues of Rs771 crore over 12 months
National Spot Exchange Ltd (NSEL) said it has advised banks to disburse Rs11 crore to investors that was lying in its escrow account. NSEL said it received permission from commodities market regulator Forward Markets Commission (FMC) to distribute the money.
According to a release, NSEL received the money from Mohan India Group as down payment as part of their settlement agreement. "The disbursal will be done proportionately to all those who have receivable amounts against their unsettled obligations," NSEL said in the release.
Earlier in October, Mohan India Ltd has agreed to pay its dues of Rs771 crore to NSEL over the next 12 months. Mohan India at that time agreed to pay Rs11 crore as down payment to NSEL.
Talking about the pay out of Indian Bullion Markets Association (IBMA), promoted by Jignesh Shah-led Financial Technologies (India) Ltd, the Exchange said, as per the regulatory directive, it would retain Rs1.78 crore in its escrow account.
"We are in discussion with the authorities and are hopeful to resolve the issue and release the payouts of IBMA hitherto retained in escrow account of NSEL. Members are requested to take note of it," the release said.
NSEL has failed to settle Rs5,600 crore due to 148 members/brokers, representing 13,000 investor clients, after it suspended trade on 31st July on government direction.
In August, NSEL filed complaint against five of its defaulting members before the investigation authorities. This includes Ark Imports Pvt Ltd, Lotus Refineries Pvt Ltd, NK Proteins Ltd, Vimladevi Agrotech Ltd and Yathuri Associates.
During the same month, NSEL had declared 10 members, including Mohan India as defaulters. The other nine members were LOIL Continental Food Ltd, LOIL Health Foods Ltd, Namdhari Food International Pvt Ltd, Namdhari Rice and General Mills, White Water Foods Private Ltd, Shree Radhey Trading Company, PD Agroprocessors Pvt Ltd, Swastik Overseas Corporation and Juggernaut Projects Ltd.
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
Fiercely independent and pro-consumer information on personal finance.
1-year online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )
