 "NSEL declares 10 more members as defaulters, FM vows 'strict' action")
New Delhi: Crisis-ridden NSEL on Wednesday declaredten more entities as defaultersafter they failed to pay their dues on the second-pay out, taking the number of members who are to pay dues at 19.
The exchange also declared the name of clients who traded through defaulting members.
The nine members who have been declared defaulters are, LOIL Continental Food, LOIL Health Foods, Mohan India, Namdhari Food International, Namdhari Rice and General Mills, White Water Foods, Shree Radhey Trading Company, P D Agroprocessors, Swastik Overseas Corp and Juggernaut Projects.
[caption id=“attachment_1068575” align=“alignright” width=“380”]  Reuters[/caption]
Meanwhile, the government today said it is keeping a close watch on thedevelopments in the crisis-ridden NSELand will take action once reports of the two committees looking into the problems of the exchange are received.
“We have appointed two committees. Once two reports come, government will take action. We are keeping a close watch. We are in constant touch with Sebi and FMC,” Finance Minister P Chidambaram told reporters here. He said the committees would submit their reports by September 7.
NSEL, promoted by Jignesh Shah-headed FTIL, isfacing a crisis after it suspended tradeon July 31, raising concerns about possible default of Rs 5,600 crore owed by 24 buyers/ members.
NSEL has defaulted for the second consecutive week in paying its investors as it has been able to pay only Rs 12.05 crore against the scheduled payout of Rs 174.72 crore.
Earlier, the exchange had declared the name of nine members as defaulters who failed to pay their dues on the first day of settlement on August 20, following directives from the commodity market regulator FMC. Only Rs 92 crore was mopped up out of Rs 174.72 crore scheduled payout.
FMC had directed NSEL to declare members, who have failed in making payments, as ‘defaulters’ and liquidate all their realisable assets.
The regulator also asked NSEL to auction defaulters’ commodities lying in the accredited warehouses as collateral.
FMC had also ordered NSEL to ask defaulters to hand over books, documents, papers, assets, cheque books and other documents, and the same should vest with the exchange for the benefit of creditors.
Agencies
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