NSEL reports that over 90% of traders have expressed willingness to settle
The settlement plan requires the payment of ₹1,950 crore to 5,682 traders based on their outstanding balances as of July 31, 2024.
NSEL reports that over 90% of traders have expressed willingness to settle
The bourse announced that over 90% of major traders consented to a one-time settlement (OTS) of their outstanding payments since the National Spot Exchange (NSEL) trading halt occurred 13 years ago which left numerous commodity traders in severe financial distress. The National Spot Exchange (NSEL) and its parent company 63 Moons Technologies will transfer Rs 1,950 crore to approximately 5,700 traders as the final settlement amount under a supervised settlement by NCLT.
The settlement will end all outstanding legal cases against the company while transferring all traders' rights to 63 Moons according to a spot exchange announcement.
The NSEL Investors Forum which represents the affected traders suggested the OTS to both NSEL and its proprietors during the previous year. The NCLT directed a digital voting procedure for the OTS resolution in early April this year. The month-long online voting process finished on May 17 and a court-appointed scrutiniser announced the results on Monday. The NSEL release stated that 93% of affected traders in number and 91.4% in value supported the resolution which confirmed their agreement to the settlement scheme.
According to NSEL, the settlement will terminate all ongoing legal cases against them while granting all trading rights to 63 moons.
The settlement will provide substantial relief to traders who experienced blocked funds during the NSEL payment crisis of July 2013. The NSEL payment crisis victims entitled to Rs 10 lakh or less have received their full payments over the past few years.
The OTS provisions state that traders whose dues surpass Rs 10 lakh will receive payments ranging from 7.3% to 37% of their total dues. The group of traders obtained payments during the past few years.
