Could Over 90% of Traders Embrace the Rs 1,950 Crore NSEL Settlement?

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.