New Delhi : The National Spot Exchange Ltd defaulted in its payment to investors for the second consecutive week on Tuesday, even as the government set up a panel of secretaries headed by Economic Affairs Secretary Arvind Mayaram to look into affairs of the crisis-ridden exchange.
On a day NSEL paid just 7 per cent of the promised Rs 174.72 crore weekly payment to investors, the exchange’s main promoter Jignesh Shah-led Financial Technologies Ltd (FTIL) said it will provide a loan of over Rs 177 crore, which will be utilised to pay the dues of small investors.
Finance Minister P Chidambaram said it is keeping a close watch on the developments at NSEL and action will be taken after reports of the two committees looking into the problems of the exchange are received.
FMC Chairman Ramesh Abhishek said the regulator has taken note of NSEL defaulting in meeting payment obligations, but did not say what action it will take on the issue.
Abhishek indicated action may be taken only after the Mayaram Committee gives its report.
The panel of secretaries will be supported by two working groups, which will be headed by Director, Enforcement Directorate (ED) and Deputy Governor RBI, respectively.
The working groups, which have to submit the report in two-weeks, will look into violations by NSEL and will suggest measures to be taken to check any systematic fallout of the NSEL crisis on the financial system.
In total, the exchange said, it will make a payment of Rs 190 crore to around 7,000 small investors. For which, it has availed a bridge loan of Rs 177.23 crore from FTIL and will also make a payment of Rs 12.60 crore from escrow account.
The beleaguered bourse received a total amount of Rs 12.05 crore for the scheduled pay-out today. Meanwhile, it has emerged that Maharashtra government has cancelled the direct selling licence of NSEL after finding irregularities at the bourse.
Maharashtra Agriculture Department cancelled the direct marketing licence of NSEL after finding irregularities at the bourse in December last year, which indicates that trouble was brewing at the exchange well before it was directed by the government to stop operations last month.
NSEL is facing the problem of settling Rs 5,600 crore dues to 148 members/brokers, representing 13,000 investor clients, after it suspended trade on July 31.