NCLT Approves Rs 1,950-Crore Settlement For NSEL Traders
NSEL had filed the settlement scheme before the NCLT Mumbai for an amicable full and final resolution with the traders.
The National Company Law Tribunal (NCLT) has approved a One Time Settlement Scheme between the National Spot Exchange Ltd. and traders, paving the way for payment of Rs 1,950 crore to 5,682 traders, the exchange announced Friday.
The settlement envisages proportionate payments to traders based on their outstanding dues as of July 31, 2024, in exchange for closure of legal cases against the group and assignment of all traders' rights in favour of 63 moons, NSEL said in a statement.
NSEL, with support from its parent company 63 moons technologies limited, had filed the settlement scheme before the NCLT Mumbai for an amicable full and final resolution with the traders.
When put to vote by the tribunal, 92.81% of traders by number and 91.35% by value voted in favour of the settlement.
This marks the second time 63 moons has stepped in to support traders. In August 2013, NSEL, backed by 63 moons, had paid around Rs 179 crore, providing relief to 7,053 smaller traders with outstanding dues of less than Rs 10 lakh.
The decision brings relief to traders whose funds were stuck following the NSEL payment crisis in July 2013.
'This would not have been possible without the positive approach of the present BJP government (Central & State) in resolving the crisis, which was not resolved by P Chidambaram and the UPA 2 government for reasons best known to them,' said Neeraj Sharma, Managing Director and CEO of NSEL.
Sharad Kumar Saraf, Chairman of NSEL Investors' Forum (NIF), expressed gratitude for the efforts by 63 moons and NSEL, along with support from the central and state governments in achieving closure.
