NSEL defaults for 11th time; pays Rs 29 crore

Crisis-ridden bourse NSEL defaulted for the 11th straight time on Tuesday as it could pay only Rs 29 crore to investors against a scheduled payment amount of Rs 174.72 crore.

With today's pay-out, NSEL settled about Rs 209 crore against Rs 5,600 crore dues to 13,000 investors.

National Spot Exchange Ltd (NSEL), which is engulfed in a Rs 5,600-crore payment crisis, had previously defaulted ten times. On its seventh pay-out date, the bourse was unable to make any payment as its accounts were frozen by economic offences wing (EoW) of the Mumbai police.

"The total amount being disbursed today in a proportionate manner is Rs 29.05 crores," the NSEL circular said.

Topworth Steels and Power Pvt Ltd has made a payment of Rs 29.05 crore to the exchange, while 23 of them have defaulted, according to the NSEL data.

NSEL 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 5,600 crore dues to 148 members after it suspended trade on July 31 on the government direction.

The bourse plans to settle the entire dues in 30 weeks time, by paying Rs 174.72 crore for first 20 weeks followed by Rs 86.02 crore in next 10 weeks.