The Economic Offences Wing (EOW) of the Mumbai police, on Tuesday, froze bank accounts of crisis-ridden National Spot Exchange Ltd (NSEL), which said the action prevented the exchange from making a scheduled payment of Rs.174.72 crore to investors.
“The EOW Mumbai police have in accordance with legal procedures, frozen the bank accounts of NSEL, including the settlement bank accounts. In view of the same, NSEL is unable to make any payouts today,” NSEL said in a statement.
The Forward Markets Commission, the commodity market regulator, which is overseeing the exchange’s settlement process, had been informed about the freezing of bank accounts, NSEL said. NSEL had in August submitted a plan to the FMC to settle about Rs.5,600 crore of dues to investors over a seven-month period ending in March. “NSEL is taking legal advice to defreeze the settlement bank accounts and investors as well as members will be notified in due course,” the statement added. — PTI