NSEL forms settlement panel; to prepare payment plan by Aug 14

Mumbai, Aug 5. The National Spot Exchange Ltd (NSEL), which faces a risk of default after suspending trade, today said it has formed an independent committee to advise and monitor settlement of trade amounting to about Rs 5,500 crore. NSEL will come out with the settlement plan by August 14, Jignesh Shah, Chairman and Managing Director of Financial Technologies India Ltd (FTIL), one of the promoters of NSEL, told reporters here. The exchange has been in a crisis after it suspended trade in most contracts on July 31. The decision to set up the committee was taken after a joint meeting of the regulator Forward Markets Commission (FMC) and NSEL with investors yesterday. "NSEL constituted an independent committee of eminent persons for the purpose of advising and monitoring the progress of financial close-out plan," the exchange said in a statement. Members of the committee include former Company Law Board Chairman Sharad Upasani, former Bombay High Court judge R J Kochar, former Sebi and LIC Chairman G N Bajpai, and D Sivanandan, former Director General of Police in Maharashtra. NSEL said the exchange will collate the payment plan from buyers and finalise pay-in and pay-out in consultation with the FMC and then announce it to the market. Yesterday, the exchange said eight entities are willing to pay about Rs 2,181 crore as per the scheduled due date or earlier. Another 13 entities have offered to pay about Rs 3,107 crore in weekly installments, while negotiations are on with three others for payment of Rs 311 crore.