This Article is From Sep 16, 2013

NSEL investors demand seizing assets of promoter firm

New Delhi:

Investors of the crisis-ridden National Spot Exchange Ltd today demanded that the government seize the assets of NSEL promoter firm Financial Technologies India Ltd to safeguard their interests.
NSEL Investor Forum secretary Arun Dalmia met Economic Affairs Secretary Arvind Mayaram, who said that the government is examining the issue and strict action would be taken against the guilty.
NSEL, promoted by FTIL, is facing deep payment crisis after it shut down operation following government direction.
"There are concerns that NSEL promoters may dispose of assets. While investigations take time, the assets must be secured, and government need to consider freezing of the assets," Mr Dalmia told reporters after meeting Mr Mayaram.
When asked about Mayaram's response, Mr Dalmia shared, "He said that they are going through the reports. After examining the reports, due course of action will be taken."

On the suggestion that investors should sort out the issue directly with FTIL promoter Jignesh Shah, a member of the Investors Forum Uday Punj said meeting with Mr Shah would not help.
"I think money is not in his (Shah) bank account. He needs to get money from borrowers and settle the dues," he said.
Investors Forum said that NSEL and its promoter FTIL need to go after buyer members for recovery of the money.

The bourse has already defaulted four times so far on the scheduled pay out and has been able to settle only Rs 128 crore out of Rs 5,600 crore outstanding to the 13,000 investors.