NSEL Net Worth Jumped Four-Fold to Over Rs 175 Crore in FY13

New Delhi: National Spot Exchange Ltd's net worth surged nearly four times to Rs 175.76 crore in 2012-13, the last full financial year before the Financial Tech--promoted entity was hit by a Rs 5,600-crore payment crisis.

NSEL's net worth was Rs 46.93 crore in 2011-12.

The details were provided in the draft order on Tuesday wherein the government decided to merge NSEL with its holding group Financial Technologies India Ltd (FTIL).

NSEL had started functioning as a 'spot exchange' in 2008.

To help investors and others hit by the Rs 5,600-crore "fraud" at the NSEL get back their money, the government has ordered merger of the scam-hit firm with its holding company FTIL.

According to the order, the spot exchange had an authorised share capital of Rs 50 crore as on March 31, 2013.

Further, its issued, subscribed and paid-up capital stood at Rs 45 crore. Financial Technologies (India) along with nominees hold a 99.99 per cent stake in NSEL, making the spot exchange its subsidiary, the order said.

On July 31, 2013, NSEL announced suspension of trading in all contracts (except e-series) and decided to merge the delivery and settlement of all the pending contracts and deferred that for 15 days.

As a result of this action by NSEL, a payment crisis of around Rs 5,600 crore arose at the exchange involving about 13,000 investors.

Such dues included those to public sector companies like Projects and Equipment Construction Ltd (PEC) and Minerals and Metals Trading Corporation (MMTC).