Mumbai, Aug. 14: Crisis-hit National Spot Exchange Ltd (NSEL) today submitted a seven-month plan with the Forward Markets Commission (FMC) to settle dues worth Rs 5,574.31 crore.
The FMC said it would take a decision on the plan after getting views from brokers and investors, while directing NSEL not to make payments to related entity IBMA (Indian Bullion Market Association) without prior approval.
According to NSEL, the settlement process could start from August 16 and run till March 11 next year.
Earlier, the exchange had said it would settle the payments to over 13,000 investors over the next five months.
“Today, we have finalised the detailed settlement plan. Starting this Friday, August 16, there will be pay-ins every Friday and pay-outs every subsequent Tuesday,” NSEL managing director and CEO Anjani Sinha said in a statement.
According to the plan, Rs 3,494.4 crore will be settled this year in weekly instalments of Rs 174.72 crore.
Another Rs 860 crore will be paid in ten weekly instalments of Rs 86.02 crore each during January-March quarter next year.
There are 24 buyers required to complete pay-in obligation to ensure smooth settlement, Sinha said, adding the focus should be on these buyers for the realisation of pending dues.
Brokers were, however, not happy with the schedule, particularly with regard to the payout being increased by another 10 weeks.
“This needs greater clarity and there are doubts whether the exchange will be able to meet its obligations,” said a broker.