May take around five months to settle pay-in and pay-outs
Financial Technologies (India) Limited (FTIL) founder Jignesh Shah said on Monday that the National Spot Exchange Ltd (NSEL) would take around five months to settle the pay-in and pay-out obligations, which rattled the commodity market in the last few days.
NSEL is the wholly-owned subsidiary of FTIL.
It could take around five months for investors awaiting pay-out on the NSEL to get their money, said Mr. Shah while addressing a press conference here. The settlement would be fully in cash, and none of the physical stock would be handed over to investors, he added.
The Exchange would also submit to Forward Markets Commission (FMC) the details of members who were not co-operating and not giving pay-in commitment so that they could be dealt with sternly by operation of law in order to ensure that investors got their dues, he said.
However, he said that under the proposed payment schedule, the members would repay the dues in phases over the next five months. The schedule of the pay-out would be announced on August 14, he said. Broker-wise exposure would be put up on the website later, he added.
The Exchange has constituted an ‘oversight committee’ for the purpose of monitoring the pay-out of dues as would be decided in consultation with FMC. The management of the Exchange will report to this committee for implementation of the process. The committee consists of Sharad Upasani, Former Chief Secretary, Government of Maharashtra and Former Chairman, Company Law Board; Justice R. J. Kochar, Former Judge, Bombay High Court; G. N. Bajpai, Former Chairman, SEBI; and D. Sivanandan, Former Director General of Police, Maharashtra.
In addition to this, NSEL is constituting two committees — one committee of planters / processors and second is of members of the Exchange. The Exchange would update the FMC regularly on these matters.