NSEL crisis: Investor forum says brokers may boycott MCX trading for a day

Brokers may boycott trading on Multi Commodity Exchange (MCX) for a day as a protest against government authorities' "failure" to resolve the crisis at beleaguered bourse National Spot Exchange Ltd (NSEL).

"We will shortly decide the date for boycotting the trade on the Multi Commodity Exchange (MCX) for a day towards protest against government authorities' failure to resolve the National Spot Exchange Ltd (NSEL) payment crisis involving Rs 5,500 crore," NSEL Investors Forum president Sharad Kumar Saraf told reporters on Friday.

The brokers are also considering boycotting trading for a day on all the exchanges, he said.

Reacting to Finance Miniser P Chidambaram's remark that NSEL was an unregulated entity and violated norms from day one, Mr Saraf said, "We have not done any speculation and disappointed by the slow progress of the government's role in resolving the matter."

The Mayaram panel report has suggested that the Central Bureau of Investigation (CBI), Forward Markets Commission (FMC) and the Ministry of Corporate Affairs will take appropriate action. They have listed out the irregularities. Mr Chidambaram had said on Thursday that the authorities were looking into the matter.

A panel headed by Economic Affairs Secretary Arvind Mayaram had been tasked to look into alleged irregularities in the functioning of NSEL, which is grappling with the crisis worth payment of Rs 5,500 crore.

"The battle for recovering Rs 5,500 crore will be a long one and we need to have patience. The NSEL Investor's Forum will be converted into NSEL Investor's Society to get it registered to fight the legal cases," he said.

The forum has also requested its members and brokers to contribute money required to fight legal cases against 24 defaulters and NSEL promoters, he added.

The forum has already filed a complaint with the Economic Offence Wing (EOW) and filed a writ in the Bombay High Court seeking time-bound investigation process.