NSEL declares 9 of its members ‘defaulters’ on orders from FMC
24 Aug 2013 11:27 PM GMT
Crisis-hit National Spot Exchange Ltd (NSEL) on Friday declared nine members (buyers) who failed to pay their dues on the first day of settlement on 20 August as 'defaulters', following directives from the commodity market regulator FMC.
'Following members have been declared as defaulters as per the rules of the exchange -- (a) ARK Imports Pvt Ltd (b) Loil Overseas Foods Ltd (c) Lotus Refineries Pvt Ltd (d) N K Proteins Ltd (e) NCS Sugars Ltd (f) Spin Cot Textiles Pvt Ltd (g) Tavishi Enterprises Pvt Ltd (h) Vimladevi Agrotech Ltd (i) Yathuri Associates,' NSEL said in a circular.
NSEL, promoted by Jignesh Shah-led Financial Technologies (India) Ltd, is facing the problem of settling Rs 5,500 crore dues to 148 members/brokers, representing 13,000 investor clients, after it suspended trade on 31 July on the government direction. The spot exchange announced a seven month plan to settle these dues. However, NSEL was able to pay only Rs 92 crore on 20 August, the first day for pay-out to investors, out of the scheduled Rs 174.72 crore.
The exchange had informed that these nine members (buyers) did not pay their instalments.After this, FMC had directed NSEL to declare members, who have failed in making payments, as 'defaulters' and liquidate all their realisable assets. The regulator also asked NSEL to auction defaulters' commodities lying in the accredited warehouses as collateral.
FMC had also ordered NSEL to ask defaulters to hand over books, documents, papers, assets and other documents, and the same should vest with the exchange for the benefit of creditors.
'Following members have been declared as defaulters as per the rules of the exchange -- (a) ARK Imports Pvt Ltd (b) Loil Overseas Foods Ltd (c) Lotus Refineries Pvt Ltd (d) N K Proteins Ltd (e) NCS Sugars Ltd (f) Spin Cot Textiles Pvt Ltd (g) Tavishi Enterprises Pvt Ltd (h) Vimladevi Agrotech Ltd (i) Yathuri Associates,' NSEL said in a circular.
NSEL, promoted by Jignesh Shah-led Financial Technologies (India) Ltd, is facing the problem of settling Rs 5,500 crore dues to 148 members/brokers, representing 13,000 investor clients, after it suspended trade on 31 July on the government direction. The spot exchange announced a seven month plan to settle these dues. However, NSEL was able to pay only Rs 92 crore on 20 August, the first day for pay-out to investors, out of the scheduled Rs 174.72 crore.
The exchange had informed that these nine members (buyers) did not pay their instalments.After this, FMC had directed NSEL to declare members, who have failed in making payments, as 'defaulters' and liquidate all their realisable assets. The regulator also asked NSEL to auction defaulters' commodities lying in the accredited warehouses as collateral.
FMC had also ordered NSEL to ask defaulters to hand over books, documents, papers, assets and other documents, and the same should vest with the exchange for the benefit of creditors.
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