This Article is From Aug 13, 2013

CPAI, ANMI and BBF members concerned over NSEL payment crisis

Commodity Participants Association of India along with Association of National Exchanges Members of India and BSE Brokers Forum today 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.
On last Saturday, the representatives of CPAI, ANMI and BBF along with key brokers met Pankaj Agarwala, Secretary, Department of Consumer Affairs and apprised him about recent developments and market sentiments, a release said today.
The organisations told government that investors as well as market participants are eagerly awaiting the revised settlement and schedule, the release said.
The associations have suggested to FMC and the government that all buyers / processors / millers (who are supposed to make payments) should be asked to give their firm commitment towards fulfilment of their obligations, adequately supported by collaterals.
The government should take control of all the collaterals of NSEL / defaulting members / processors / buyers and to make NSEL, Financial Technologies (India) Ltd (FTIL) and the promoters accountable and to make good the outstanding amount to investors/ sellers, according to the release.
There is an urgent need to put custody and control of assets and bank accounts of all the group entities and their promoters under the supervision of the committee to be formed by FMC / the Government, the associations said.
The associations sought immediate intervention of government to restore confidence and protect the interest of investors. Comments from NSEL were not immediately available.