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Rediff.com  » Business » NSEL fails to pay investors, defaults for 13th time

NSEL fails to pay investors, defaults for 13th time

November 13, 2013 08:33 IST

Crisis-hit National Spot Exchange Ltd (NSEL) on Tuesday failed to pay investors any of the Rs 174.72 crore (Rs 1.74 billion) installment due to them, defaulting for the 13th straight time.

In the last 12 weekly installments, NSEL had settled just about Rs 220 crore (Rs 2.2 billion) against the Rs 5,600 crore (Rs 56 billion) due to 13,000 investors.

NSEL, which is engulfed in Rs 5,600-crore payment crisis, was not able to pay any amount in the 13th pay-out today, sources said.

The spot exchange was unable to make any payment on its seventh pay-out date as well following freezing of accounts by economic offences wing (EoW) of the Mumbai police.

NSEL had availed a bridge loan of Rs 177.23 crore (Rs 1.77 billion) from its promoter Financial Technologies (FTIL) to make payments on priority basis to small investors.

NSEL, promoted by Jignesh Shah-led FTIL, is facing the problem of settling Rs 5,600 crore dues to 148 members after it suspended trade on July 31 on the government direction.

The bourse plans to settle the entire dues in 30 weeks time, by paying Rs 174.72 crore for first 20 weeks followed by Rs 86.02 crore (Rs 860 million) in next 10 weeks. 

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