Concerned over slow pace of recovery of money from National Spot Exchange Ltd (NSEL) defaulters, regulator Forward Markets Commission (FMC) has asked the commodity spot exchange to strengthen its recovery team and file suits in this regard against all defaulting members.
National Spot Exchange, a subsidiary of the Jignesh Shah-led Financial Technologies India Ltd, has recovered about Rs 356.39 crore of dues from defaulting members out of the total outstanding amount of Rs 5,689 crore
Out of 24 defaulters, only two members have paid fully, while the rest 22 members are still defaulting on payments.
ADVERTISEMENT
FMC said: “NSEL assured that they would take steps such as strengthening the recovery team at NSEL, filing of FIR and recovery suits against all defaulting members.”
The exchange also said it will initiate proceedings under Section 138 of Negotiable Instruments Act against defaulters and pursue the matters relating to realisation of funds from cooperative firm NAFED and VAT-related issues, the regulator said in a statement.
NSEL has been grappling with a payment crisis since suspending trade in July 2013 following a government order. Multiple agencies are probing the NSEL’s activities and assets of defaulters have also been attached.
ADVERTISEMENT