This Article is From Aug 18, 2013

NSEL payment crisis to be discussed in Parliament this week: report

NSEL payment crisis to be discussed in Parliament this week: report
New Delhi:

The payment crisis at National Spot Exchange Ltd (NSEL) will be discussed in Parliament this week as members have raised concerns over possible default of Rs 5,600 crore due to investors, according to a source.

"A member has given a notice for moving the Calling Attention Motion on the NSEL issue in Parliament. The notice has been accepted and discussion will be held this week," the highly placed source told PTI.

Concerned over default of payments to 7,000 small investors, Minister of State for Telecom and Shipping Milind Deora had written a letter to Prime Minister Manmohan Singh seeking his intervention in this issue.

Besides him, Congress MP Vijay Darda had to institute a probe by the Serious Fraud Investigations Office (SFIO) into the affairs of the exchange and book the guilty.

The NSEL, promoted by Jignesh Shah-headed Financial Technologies India Ltd (FTIL), is facing the problem of settling huge dues of Rs 5,600 crore to investors after it suspended trade on July 31 following the government direction.

The bourse has submitted a seven-month payment plan to the regulator Forward Markets Commission (FMC), which has approved the schedule for the "time being" but has questioned the credibility of accounts and information given by the spot exchange.

It has directed the NSEL to appoint a forensic auditor within next seven days to establish the credibility of books of account, record maintenance by the exchange.