The National Spot Exchange Limited (NSEL), on Saturday, said that the Forward Markets Commission (FMC) would meet with 21 large entities (bulk buyers and sellers) of commodities along with the Exchange officials and brokers to resolve the settlement issue on the Exchange.
The Exchange has been facing a settlement crisis in the last few days. Meanwhile, the Exchange has submitted various details such as payment schedule and stock position to the FMC on Friday.
The Chairman, members and directors of the FMC met with the Board of NSEL here on Saturday.
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“FMC also asked a list of members who are not agreeing to the settlement cycle,” a spokesperson of the Exchange said after the meeting. “The meeting will be held on tomorrow (Sunday) with an agenda to arrive at a consensus and satisfactory solution for settlement of dues in accordance with Exchange rules and bylaws. This meeting is also aimed to ensure avoiding any incidence which may have consequential impact on larger market,” said NSEL in a press release here.
Not cooperating
FMC officials have also asked for details of members, bulk buyers or sellers who are known as planters and other participants who are not cooperating with the Exchange in resolving the matter related to settlement cycle. “The FMC along with other government agencies would work together to ensure a safe and secure settlement of dues,” it added.
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Smooth process
NSEL said that it would ensure a smooth settlement process under the guidance of the FMC and the government. NSEL — promoted by Financial Technologies India Ltd. (FTIL) and the National Agricultural Cooperative Marketing Federation — had suspended most trades on its platform and deferred settlement of contracts for 15 days.
Besides FMC, SEBI has started a separate probe amid a crash in the shares of two listed group companies — FTIL and MCX — following the NSEL decision.