Mumbai, Aug. 28: National Spot Exchange Ltd (NSEL) today declared 10 more members as defaulters after they failed to meet their payment obligations.
The beleaguered bourse had already defaulted in the last two pay-outs as it was able to gather only Rs 92.73 crore in the first pay-out and Rs 12.05 crore in the second pay-out, out of the scheduled Rs 174.72 crore each.
NSEL had earlier declared nine members as defaulters. The current 10 take the total number to 19.
The 10 defaulters were LOIL Continental Food, LOIL Health Foods, Mohan India Pvt Ltd, Namdhari Food International, Namdhari Rice and General Mills, White Water Foods, Shree Radhey Trading Company, PD Agroprocessors, Swastik Overseas Corporation and Juggernaut Projects. NSEL also put out a list of clients who traded on the exchange platform through the defaulting members.
Meanwhile, the exchange could gather only Rs 80 lakh today from its members and clients for the third scheduled payout of Rs 174.72 crore which is due on September 4. Of the 24 members, only two members have paid a total of Rs 80 lakh today, an update from the exchange said.
There are 24 buyers/members who have to pay Rs 5,600 crore to the spot exchange for settling dues to investors.
Acting on a directive from the regulator Forward Markets Commission (FMC), the exchange has initiated the process of recovering outstanding dues from members.
NSEL has said it will take civil and criminal proceedings against the defaulting members apart from taking actions under the rules of the exchange.
The exchange, however, today assured its investors that it will honour all commitments. “There have been lapses at NSEL but we will fix those. We will honour all our commitments,” NSEL director Jignesh Shah said. Members of the NSEL Investors Forum today protested outside Shah’s office, demanding an end to payment crisis and merger of NSEL with Financial Technologies Ltd.