Milind Deora to PM: Help recover investors' money in spot exchange crisis

The issue of the payment crisis on National Spot Exchange (NSEL) is expected to be taken up in Parliament next week.

Crisis-ridden National Spot Exchange Ltd (NSEL) on Wednesday submitted its seven-month plan with regulator FMC for settling dues worth Rs 5,600 crore to investors. FMC said it will take a decision on the settlement plan after getting views from brokers and investors while directing NSEL not to make payments to related-entity IBMA ( Indian Bullion Market Association) without prior approval.

[caption id=“attachment_1038467” align=“alignright” width=“380”] Milind Deora. Reuters[/caption]

However, brokers are not too convinced with the settlement plan. According to a Business Standard report, many brokers raised fresh doubts about the capability of the exchange to pay. Among other things, brokers also said the planned payment period was a rather long one.

Milind Deora, Minister of State, Communications & IT and Shipping has decided to take up the cause of the brokers and have urged the government to step in and facilitate recovery of investors’ money in the spot exchange crisis.

Here’s Milind Deora’s letter to the PM: