Comments
The Forward Markets Commission has reacted strongly to the press release issued by the scam-ridden National Spot Exchange last week.
Rebutting the exchange on the recovery claim of ₹540 crore, including ₹179.25 crore raised from the promoter Financial Technologies, FMC in a statement said the total recovery is only ₹360.75 crore which constitutes just 6.44 per cent of the total outstanding amount due from defaulters.
“NSEL may consider their effort to be satisfactory but the Commission and the affected market participants are extremely concerned at this dismal progress in more than a year,” it said. On NSEL’s claim that the recovery would have been faster if FMC had exercised it authority given by the Government, the Commission said it was given the mandate only to supervise the settlement of outstanding contracts and not to act as its representative agency to take recovery measures against the defaulting members.
The exchange took seven months to obtain a legal opinion on the issue of liability of clearing members to meet the shortfall in the Settlement Guarantee Fund.
The casual approach on the part of NSEL when it comes to recovery from the clearing members by invoking the clauses of its own bye-laws are self-evident, the FMC said.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.