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Sep 17, 2013, 10.10 PM IST | Source: PTI

Investors hope to recover Rs 4Kcr from top 5 NSEL borrowers

Investors forum members Monday met Economic Affairs Secretary Arvind Mayaram and sought that investigative agencies should take stringent action against those members who are not making payments.

Investors hope to recover Rs 4Kcr from top 5 NSEL borrowers

NSEL Investors Forum today said it expects to recover Rs 4,000 crore from top five borrowers of the exchange. National Spot Exchange Ltd (NSEL), promoted by Jignesh Shah-led FTIL , is facing the problem of settling Rs 5,500 crore dues of 148 members, representing thousands of investors, after it suspended trade on July 31 on the government's direction. ( Read More )

"With the help of NSEL and government agencies, we expect to recover around Rs 4,000 crore, which is 65-70 per cent of the total outstanding of Rs 5,500 crore from the top five borrowers of the exchange," NSEL Investor Forum Chairman Sharad Saraf told reporters here.

We have found out that Rs 5,500 crore is in the system only with NSEL, its promoters company Financial Technologies and with its 24 borrowers, Saraf said.

Investors forum members Monday met Economic Affairs Secretary Arvind Mayaram and sought that investigative agencies should take stringent action against those members who are not making payments.

"We raised our concerns with Mayaram and demanded to direct investigative agencies to go after borrowers of NSEL," Saraf said. The investors forum is also approaching Economic Offence Wing (EOW) of the Mumbai Police for legal action against the NSEL promoters and 24 defaulters of the exchange.

"We are lodging formal complaint with EOW on Thursday to take appropriate legal action, including criminal action against the promoters, 24 defaulters of the exchange for recovery of investor funds of over Rs 5,500 crore," Saraf said.

The Mumbai police has already formed a special investigation team (SIT), headed by a DCP, to conduct a preliminary inquiry into the Rs 5,500-crore NSEL payment default crisis after some investors lodged a complaint against the exchange and its office-bearers.

"A special team has been formed to look into the complaints against the NSEL," Joint Police Commissioner Himanshu Roy had told PTI without divulging details related to the progress of preliminary inquiry.

Financial Tech stock price

On October 22, 2014, at 12:18 hrs Financial Technologies was quoting at Rs 179.35, up Rs 9.70, or 5.72 percent. The 52-week high of the share was Rs 403.60 and the 52-week low was Rs 135.75.


The latest book value of the company is Rs 522.91 per share. At current value, the price-to-book value of the company was 0.34.

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