NSEL defaults for fifth time; appoints new CEO and MD

The National Spot Exchange Ltd (NSEL) on Tuesday defaulted for fifth straight time in making payments as it could pay only Rs 8.57 crore to investors out of the scheduled amount of Rs 174.72 crore.

Menawhile, in another development, the crisis-ridden exchange appointed Saji Cherian as new CEO and Managing Director of the bourse, nearly a month after sacking its previous chief Anjani Sinha. Cherian has over 23 years experience in dealing with exchanges and market participants.

NSEL had defaulted in payments on four previous occasions as well. With today's pay-out, NSEL has been able to settle just about Rs 137 crore out of Rs 5,500 crore outstanding to the 13,000 investors.

"The total amount being disbursed today is Rs 8,57,88,539," NSEL said in a statement.



Members of the exchange are advised to disburse the amount in the same proportion to all the pending clients having receivable amount against their unsettled obligations, it said.

According to the NSEL data, four members out of 24 have paid in Rs 8.57 crore on Tuesday to the bourse, against the the pay-out requirement of Rs 174.72 crore.

The four members include Metkore Alloys & Industries (Rs 4.5 crore), N K Proteins (Rs 2.1 crore), Sankhya Investments (Rs 1.4 crore) and Yathuri Associates ( Rs 58 lakh)

The beleaguered NSEL has already defaulted in the last four pay-outs as it could gather only Rs 92.73 crore in the first pay-out (August 20), Rs 12.05 crore in the second pay-out (August 27), Rs 15.37 crore in third pay-out (September 3) and Rs 7.77 crore in the fourth pay-out (September 10), out of the scheduled Rs 174.72 crore each time.

The bourse, however, had availed a bridge loan of Rs 177.23 crore from its promoter Financial Technologies (FTIL) to make payments on priority basis to small investors.

NSEL, promoted by Jignesh Shah-led FTIL , is facing the problem of settling Rs 5,500 crore dues to 148 members after it suspended trade on July 31 on the government direction.

The bourse plans to settle the entire dues by paying back investors Rs 174.72 crore every week in seven months time.

With PTI inputs