Could Over 90% of Traders Embrace the Rs 1,950 Crore NSEL Settlement?
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Synopsis
In a groundbreaking move, the NSEL has announced that over 90% of traders support a Rs 1,950 crore settlement plan, offering a glimmer of hope for many affected by the longstanding payment crisis. This approval marks a significant step towards resolving legal issues and restoring confidence among investors.
Key Takeaways
- Over 90% of traders support the Rs 1,950 crore settlement.
- The settlement aims to resolve a payment crisis dating back to July 2013.
- Legal cases against NSEL will be closed as part of the agreement.
- Compensation will be distributed by July 31, 2024.
- This initiative is a significant step towards restoring trust in financial markets.
Mumbai, May 20 (NationPress) In a significant breakthrough that may finally offer relief to numerous affected traders, the National Spot Exchange Limited (NSEL) revealed on Tuesday that more than 90 percent of traders have endorsed a Rs 1,950-crore one-time settlement initiative.
This scheme is designed to address the long-standing NSEL payment dilemma that originated in July 2013.
The NSEL disclosed that a total of 92.81 percent of traders by number and 91.35 percent by value supported the resolution, which was finalized through e-voting on May 17.
"Under the settlement plan, an amount of Rs 1,950 crore will be allocated to 5,682 traders based on their outstanding amounts as of July 31, 2024. This agreement will lead to the closure of legal actions against the group and the transfer of all trader rights to 63 moons," stated the NSEL.
The voting was mandated by the National Company Law Tribunal (NCLT) in Mumbai back in April, with Ashwini Gupta serving as the Scrutiniser and Mukesh Mital, a retired IRS officer, acting as Chairperson.
Supported by its parent company, 63 moons technologies limited, NSEL had presented the Scheme of Settlement to the NCLT for a comprehensive resolution involving 5,682 traders.
According to the scheme, Rs 1,950 crore will be distributed according to each trader’s outstanding balance as of July 31, 2024.
The NSEL indicated that this settlement would result in the cessation of legal proceedings against the group and the assignment of all traders' rights to 63 moons.
This initiative was initially proposed by the NSEL Investors Forum (NIF), which represents a significant number of impacted traders.
NSEL's MD and CEO, Neeraj Sharma, commended the NIF for their role in fostering discussions that led to this pivotal proposal.
He remarked that this move signifies a crucial stride towards justice for traders who have faced blocked funds for over a decade.
NIF Chairman, Dr. Sharad Kumar Saraf, expressed his contentment with the e-voting results, noting that the 92.81 percent approval demonstrates a strong desire among traders to recover at least a portion of their investments.
He characterized this event as a vital milestone in the distribution of funds to designated creditors.
63 moons' MD and CEO, S. Rajendran, described the settlement as unprecedented and expressed optimism that with the backing of both central and state governments, the proposal will be effectively executed.
Point of View
I believe this development represents a turning point for thousands of traders who have faced adversity due to the NSEL crisis. The overwhelming support for the settlement scheme illustrates the urgency for resolution and restoration of trust in the market. It is a pivotal moment that we must monitor closely.
NationPress
14/06/2025
Frequently Asked Questions
What is the NSEL settlement about?
The NSEL settlement is a one-time scheme amounting to Rs 1,950 crore aimed at compensating over 5,600 traders affected by the payment crisis that began in July 2013.
How many traders voted in favor of the settlement?
Over 90% of traders, specifically 92.81% by number and 91.35% by value, voted in favor of the settlement during the e-voting process.
What will happen to the legal cases against NSEL?
The settlement plan will lead to the closure of legal cases against NSEL and will transfer all rights of the traders to 63 moons.
When will the settlement amounts be distributed?
The distribution of the settlement amounts will occur in proportion to each trader's outstanding balance as of July 31, 2024.
Who proposed the settlement scheme?
The settlement scheme was initially proposed by the NSEL Investors Forum (NIF), which represents a large number of affected traders.
