NSEL Pays Rs 141 Crore to E-Silver Unit Holders

Mumbai: National Spot Exchange Ltd (NSEL) has announced that Rs 43.89 crore was paid as final payment to unit holders of e-Silver transactions, achieving financial closure on Wednesday.

Initial remittances comprised sale of 70.48 per cent of silver, and sale proceeds of Rs 97.34 crore was directly credited to bank accounts of unit holders beginning from June 5, 2014, NSEL said in a statement.

With Wednesday's payment of Rs 43.89 crore, the total amount realised stood at Rs 141.23 crore, at an average rate of 41.06722 per unit of e-Silver, the statement said.

Last year, the NSEL scam involving Rs 5,600 crore broke out when the exchange failed to pay its investors in commodity contracts.

The exchange said the move would benefit 16,285 investors of e-Silver to redeem their holdings.

The exchange started the process of redemption of e-Series from April 12, 2014 beginning with re-materialisation. More than 10,000 kg of e-Silver was re-materialised and delivered to unit holders out of 44,500 kg of silver available for redemption.

It may be noted that since May 8, 2014, despite the ongoing crisis the exchange started the process of financial closure in a systematic manner by auctioning the underlying commodities of balance stock which was available after re-materialisation.

So far, the exchange has concluded the sale of gold and zinc in its entirety and distributed the amount to the unit holders.

The value of total metals re-materialised and sold so far in e-Series redemptions is about Rs 369 crore, as against the total metal worth of Rs 375 crore, which is 98.4 per cent of the total value.

The process of financial closure of platinum, copper, lead and nickel comprising of remaining balance 1.6 per cent of the total value is on and it is expected to be completed soon, NSEL said.