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Key Points

The National Spot Exchange Limited (NSEL) has achieved a breakthrough in resolving a decade-long payment crisis affecting thousands of traders. Over 90% of traders have voted in favor of a Rs 1,950 crore one-time settlement scheme that will distribute funds proportionally to affected investors. The settlement, approved through e-voting, promises to close all pending legal cases and provide much-needed relief to traders whose funds have been stuck since July 2013. This landmark resolution represents a significant step towards financial recovery and justice for the impacted trading community.

Key Points: NSEL Traders Approve Rs 1,950 Crore Settlement Plan

  • 92.81% traders support one-time settlement scheme
  • Rs 1,950 crore to be distributed to 5,682 traders
  • Legal cases against group to be closed
  • Settlement plan initiated by NSEL Investors Forum
2 min read

Over 90 pc traders welcome Rs 1,950 crore one-time settlement in NSEL crisis

Over 90% of NSEL traders vote for landmark resolution to recover investments stuck since 2013 payment crisis

"This move marks a significant step towards justice for traders - Neeraj Sharma, NSEL MD"

Mumbai, May 20

In a major development that could finally bring relief to thousands of affected traders, the National Spot Exchange Limited (NSEL) on Tuesday announced that over 90 per cent of traders have voted in favour of a Rs 1,950-crore one-time settlement scheme.

The scheme aims to resolve the long-pending NSEL payment crisis, which dates back to July 2013.

According to the NSEL, a total of 92.81 per cent of traders in number and 91.35 per cent in value supported the resolution, which was concluded via e-voting on May 17.

"As per the scheme of settlement, an amount of Rs 1,950 crore shall be paid to 5,682 traders in proportion to their outstanding as on 31 July 2024. This settlement would mean closure of legal cases against the group along with assignment of all rights of traders in favour of 63 moons," the NSEL said.

The voting was ordered by the National Company Law Tribunal (NCLT), Mumbai, in April and supervised by Ashwini Gupta, appointed as the Scrutiniser, and Mukesh Mital, a retired IRS officer, who served as Chairperson.

The company, backed by its parent, 63 moons technologies limited, had filed the Scheme of Settlement before the NCLT for a full and final settlement with 5,682 traders.

As per the scheme, Rs 1,950 crore will be distributed in proportion to each trader’s outstanding amount as on July 31, 2024.

The NSEL said the settlement would lead to the closure of legal cases against the group and the assignment of all rights of traders in favour of 63 moons.

The plan was originally proposed by the NSEL Investors Forum (NIF), a body representing a large number of affected traders.

NSEL MD and CEO, Neeraj Sharma, praised the NIF's efforts in initiating the talks that led to this landmark proposal.

He said this move marks a significant step towards justice for traders whose funds were stuck for over a decade.

NIF Chairman, Dr Sharad Kumar Saraf, expressed satisfaction with the e-voting results, calling the 92.81 per cent approval a clear indication that most traders are eager to recover at least part of their investments.

He described the development as a key milestone in the distribution of money to specified creditors.

63 moons MD and CEO, S. Rajendran, said the settlement would be the first of its kind and expressed confidence that with the support of the central and state governments if the proposal would be successfully implemented.

- IANS

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Reader Comments

R
Rahul K.
Finally some good news for traders after 11 long years! While it's not the full amount, getting 1950 crore is better than endless court battles. Hope this sets a precedent for faster resolution of financial disputes in India. 🙏
P
Priya M.
My uncle was one of the affected traders. The stress took a toll on his health. While this settlement brings closure, we must ask why it took so long? Our financial systems need stronger safeguards to prevent such crises.
A
Amit S.
‍♂️ 90% approval shows most traders just want to move on. But what about the remaining 8%? Their concerns should also be addressed. Partial justice isn't complete justice.
N
Neha T.
This settlement is a win for common investors. The NSEL crisis shook trust in our financial institutions. Hope SEBI and other regulators have learned lessons to prevent such scams in future. #InvestorProtection
S
Sanjay P.
As someone in the financial sector, I appreciate how NCLT facilitated this resolution. The e-voting mechanism was efficient. More such tech-enabled solutions needed in our legal system to speed up justice delivery.
K
Kavita R.
While the settlement is welcome, we must remember many small traders suffered immensely. The amount after 11 years won't account for inflation and opportunity costs. Financial fraud victims deserve better compensation mechanisms.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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