Jignesh Shah, promoter of National Spot Exchange ltd (NSEl), on Wednesday evening finally submitted a payout schedule via which the exchange plans to settle Rs 5,600 dues on it. In a meeting with the Forward Market Commission (FMC), Shah charted out a 31 week payout schedule which included weekly payment.
As per the plan, NSEl has fixed Friday of every week as a day for pay-in while payouts will take place on Tuesdays of every week. Payout will commence from August 20. For the first 20 weeks, NSEl will payout Rs 174.72 crore ever week. In total NSEl will pay Rs 3,494.4 crore in the span of 20 weeks. Thereafter, for the next 10 weeks, company will pay Rs 86.02 crore per week. In total will payout Rs 860.2 crore in the span of 10 weeks. Hence, in 30 weeks NSEl will clear dues worth Rs 4,354.6 crore. During the 31st week, some members will settle their dues via stock sale worth Rs 1,219.7 crore. Son in 31 weeks, NSEl has claimed to pay Rs 5,574.3 crores to its investors.
On the other hand, the Prime Minister’s Office is also working on setting up of a special team headed by the Economic Affairs Secretary Arvind Mayaram, to look into the issue. Apart from the Economic Affairs Secretary the team would also include secretaries of Department of Consumer Affairs and Ministry of Corporate Affairs, officials of Reserve Bank of India, Securities Exchange Board of India, Directorate of Revenue Intelligence and Enforcement Directorate.
On Tuesday, just a day before the meeting, BSE Broker’s Forum, Commodity Participants Association of India, NSEl Investors Forum and Association of National Exchanges Memebers of India along with IIFl and Motital Oswal Financial Services, in a press conference pointed out that the many statements given by NSEl management were incorrect and consisted of vast discrepancies. The group also requested the Government to take control of Financial Technology (FTIl), Multi Commodity Exchange (MCX) and NSEl, companies promoted Jignesh Shah.
NSEl is engulfed in a crisis after the national spot commodity bourse suspended trade on all its contracts, raising concern over the possible defaults of Rs 5,600 crore dues to about 13,000 investors. According to the NSEl, 21 entities owe nearly Rs 5,600 crore to investors, with the maximum liability of Rs 929 crore from N K Proteins.