For the first settlement, the exchange could mop up only Rs. 92 crore
Two days after the Forward Markets Commission (FMC) directed the National Spot Exchange Ltd. (NSEL) to take punitive action against those who have defaulted payment for claim settlement, the exchange declared nine members as defaulters.
They are: ARK Imports Pvt Ltd., Loil Overseas Foods Ltd., Lotus Refineries Pvt Ltd., N K Proteins Ltd., NCS Sugars Ltd., Spin Cot Textiles Pvt Ltd., Tavishi Enterprises Pvt Ltd., Vimladevi Agrotech Ltd. and Yathuri Associates.
“These members (buyers) have been declared as defaulters as per the rules of the exchange,” NSEL said in a circular.
These members had failed to meet their financial commitment for the first settlement dated August 20, 2013.
As per the settlement plans finalized by NSEL, investors were to get Rs. 174 crore every week from the buyers till clearance of the total dues amounting to Rs. 5,600 crore.
However, for the first settlement, the exchange could mop up only Rs. 92 crore— which has been distributed among investors.
On August 21, the FMC had asked NSEL to auction the commodities lying as collateral in the warehouses to recover dues from defaulting members. The exchange was asked to proceed to liquidate all realizable assets of the defaulters . An audit of the stock is currently underway .
Meanwhile, two independent directors of Financial Technologies (India) Ltd., the promoter of NSEL, have resigned from the board.
The two directors are: R Devarajan and PR Barpande. Financial Technologies has announced the appointment of N Balasubramanian as Additional Director (Non-Executive & Independent) on the board.