Mumbai, Aug. 27: Crisis-ridden National Spot Exchange Ltd (NSEL) today said it would use a bridge loan of Rs 177.23 crore from promoter Financial Technologies India Ltd (FTIL) to repay small investors.
The exchange today said it would fully pay back 608 small investors who were to receive up to 2 lakh. Besides, NSEL will clear 50 per cent of the dues of investors who are to receive between Rs 2 lakh and Rs 10 lakh. The rest will be paid proportionately.
However, NSEL today defaulted for the second time in meeting its weekly payment obligation of Rs 174 crore. It paid only Rs 12.60 crore, through the escrow account, out of the money recovered from the members with outstanding dues. Forward Markets Commission (FMC) chairman Ramesh Abhishek said the Financial Technologies loan was outside the payment schedule.
Following a directive from regulator the FMC, the exchange has initiated the process of recovering dues from the members. This includes the initiation of civil and criminal proceedings against the defaulters besides taking actions under the rules and bye-laws of the exchange. NSEL said it would also take a similar step against members who do not settle their dues according to the schedule.
Meanwhile, the Centre today said it was keeping a close watch on the developments at NSEL and would take action after receiving reports of the two committees looking into the problems.
“We have appointed two committees. Once two reports come, the government will take action. We are in constant touch with the Securities and Exchange Board of India and FMC,” finance minister P. Chidambaram said today. The committees will submit the reports by September 7.
“NSEL is under FMC and their administrative ministry is the consumer affairs ministry but it has wider ramifications. We have appointed two committees who have been asked to submit the reports by September 6 or 7,” he said.