The National Spot Exchange Ltd (NSEL) payout drama is turning sticky. Investors are fast losing patience on what they term promoter Jignesh Shah’s doublespeak. Several large investors, part of the NSEL Investors’ Forum negotiations, and brokers claim after proposing to meet payment obligations, Jignesh Shah has now suggested investors take a 25 per cent haircut on their investments. 
Quoting Jignesh Shah, investors claims they were to receive about Rs 2,184 crore (Rs 21.84 billion) by September 13, and the balance was to be paid in due course of time. During negotiations with investors, Shah, on August 22, proposed investors either take a haircut or forgo Rs 1,100 crore (Rs 10 billion) of claims.
Convener of the NSEL Investors’ Forum, Sharad Saraf, confirmed this, saying even as Shah put forward his proposal, the forum refused to accept it. Investors were prepared to accept a haircut, he said, provided the exchange was willing to make a one-time payment.
“During our negotiations on how the payments would be made, Jignesh Shah informed us some investors were willing to take a haircut but we refused. We want our money back and we are not willing to settle for anything else,” Saraf said.
Given the nature of the money stuck, investors are fast losing patience with the exchange. There are several investors who don’t want to prolong the crisis and are, therefore, willing to take a haircut. This is not acceptable to many others. Individual investors allege large brokers are pushing for a haircut, as they want an end to the crisis as soon as possible.
However, Motilal Oswal, chairman of Motilal Oswal Securities, said brokers had not accepted any such proposal. “A lot of suggestions were made and a haircut was one of them. Everybody has a different view on this, but we have to arrive at a solution that is acceptable to all,” Oswal said.
