This Article is From Dec 03, 2013

NSEL defaults for sixteenth time; pays Rs 9 crore against Rs 174 crore

NSEL defaults for sixteenth time; pays Rs 9 crore against Rs 174 crore
New Delhi:

Beleaguered bourse National Spot Exchange Ltd (NSEL) on Tuesday paid around Rs 9 crore against a scheduled payment of Rs 174.72 crore, defaulting for the sixteenth straight time.

With this payout, NSEL has so far settled about Rs 244 crore against dues worth Rs 5,600 crore to 13,000 investors.

The exchange, which is engulfed in the Rs 5,600-crore payment crisis, had previously defaulted for 15 times.

It was unable to make any payment on its seventh and thirteenth payouts.

"The total amount being disbursed today is around Rs 9 crore," an NSEL spokesperson said.

Topworth Steels and Power has made a payment of about Rs 9 crore to the exchange, while 23 of other investors have defaulted, he added.

The bourse also has received Rs 11 crore from defaulting member Mohan India, which is credited to the escrow account.

The amount shall be disbursed after obtaining necessary approval from the relevant authorities.

NSEL had availed a bridge loan of Rs 177.23 crore from its promoter Financial Technologies India Ltd (FTIL) to make payments on priority basis to small investors.

NSEL, promoted by Jignesh Shah-led FTIL, is facing the problem of settling dues to 148 members after it suspended trade on July 31 on the government direction.

The bourse had earlier said it plans to settle all the dues in 30 weeks time, by paying Rs 174.72 crore for first 20 weeks followed by Rs 86.02 crore in next 10 weeks.