NSEL announces detailed Settlement Plan

Moneycontrol Bureau

Threatened with legal action by brokers, the National Spot Exchange (NSEL) has come out with a detailed settlement plan for its existing contracts.
On July 31, NSEL had said that it was suspending all trades on one-day contracts on the bourse from the next day and would also merge several days' settlement into one. Also Read: Show us the money, Motilal Oswal tells NSEL
Since the announcement led to a payment-default like situation, the government and the Forward Markets Commission (FMC), the regulator for all commodity derivatives trades in India, stepped in to resolve the crisis in which around Rs 5,500 crore worth of funds and commodities are involved.
According to a press release by NSEL, starting this Friday, (August 16, 2013) there will be pay-in every Friday and pay-out every subsequent Tuesday. The exchange plans to pay Rs 174.72 crore every week for 20 weeks. It hopes to pay Rs 86.02 crore every week for 10 weeks thereafter.
"I and my Management Team at the National Spot Exchange Limited have been solely and directly responsible for all operations, including screening of parties, warehouse management, risk management and other related company matters. As you are aware, there are 24 buyers are required to complete funds pay in obligation to ensure smooth settlement.  Therefore, the focus should be on these buyers/processors for realization of pending dues and on nothing else. I and my management team will solely focus on ensuring smooth settlement as per the schedule annexed herewith," MD and CEO of NSEL Anjani Sinha said in the press release.
Meanwhile, the Prime Minister's Office is planning to set up a special team headed by the Economic Affairs Secretary to look into the issue. (More details) Below is the detailed pay-in/pay-out schedule by NSEL

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