With fears of default by members on August 16, the first day of payment as per the settlement plan, mounting, the Forward Markets Commission (FMC) on Monday ordered National Spot Exchange Ltd (NSEL) to disclose the party-wise amount deposited in the escrow account maintained with Axis Bank on a daily basis.
It also ordered NSEL to reconcile the amount of pay-in and pay-out to be made to various members of the exchange.
FMC also came down on NSEL for incorrrect data and raised doubts on the seriousness of the NSEL management to resolve the crisis.
“It is observed that despite several directives by the Commission, NSEL had given different information on different occasions, even just one day prior to the first scheduled pay out date – 20th August, 2013. This casts serious doubt on the reliability of the figures submitted by NSEL and also raises doubt on the seriousness of the management... regarding settlement of the outstanding obligations,” FMC said in a letter to the NSEL MD & CEO.
According to the NSEL list of members which owe money, 24 members have to make payment of Rs 5,574 crore. The NSEL list says that 148 members have to get Rs 5,380 crore from the 24 members. The pay-out amount was Rs 174,72 crore on August 16.
In a related development, the government is planning to conduct an audit of NSEL’s physical stocks lying in warehouses by own agencies as it fears defaults in payment by buyers, a top consumer affairs ministry official said on Monday.
Consumer affairs secretary Pankaj Agarwal also asked NSEL to be a responsible guarantor to the Rs 5,600-crore dues of investors and meet its commitments.
Further, there are 24 companies which have to pay around Rs 5,600 crore to the NSEL for settling dues to investors.