The National Spot Exchange Limited (NSEL), a leading commodity exchange in the country, on Sunday said that it would be giving options to bulk buyers and sellers to settle their large quantum of pay-in and pay-out (outstanding) obligations.
The Exchange suspended trading and merged the settlement cycles of all one day forward contracts (other than e-series contracts) on July 31 due to certain abrupt structural changes in the market place leading to disruption.
“This situation was aggravated by the loss of trading interest, due to uncertainties leading to trade in-equilibrium,” said the NSEL in a press release.
Meanwhile a spokesperson of the NSEL said that discussions were still going on with Forward Markets Commission (FMC) and the 21 entities which were not adhering to the settlement cycle of the Exchange.
“These meetings were aimed at ensuring avoidance of any incidence, which may have consequential impact on larger market,” said Anjani Sinha, MD & CEO of the NSEL.
However, Mr. Sinha said that in case of declaration of default by any member, which would lead to a long litigation process, options had been proposed and the final decision would be taken after due consultation with all stakeholders.
As per the NSEL, in the first option, there were eight members / processors, who were willing to pay as per the scheduled due date or even earlier. The total amount pertaining to those members was Rs. 2181 crore.
There were 13 members / processors, who had offered to pay five per cent of their total dues every week, if the same was agreed upon.