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

Mumbai, May 20 (IANS) 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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