You are using an older browser version. Please use a supported version for the best MSN experience.

E-series investors redeem Rs237 crore from NSEL

LiveMint logoLiveMint 15-06-2014 PTI

New Delhi: Crisis-hit National Spot Exchange Ltd (NSEL) on Sunday said that investors who traded in e-series contracts in metals such as gold and silver have so far redeemed `237 crore.

“Out of the total `440 crore, NSEL has disbursed `237 crore till date towards settlement of e-series gold and silver units to investors,” Saji Cherian, NSEL’s chief executive officer and managing director, told PTI.

He said around 33,000 investors held metals in electronic form under e-series contracts. Some investors have redeemed gold and silver in physical form, while others in cash.

Over 89% of e-gold and 70% of e-silver units have been credited to investors, he added.

Commodity markets regulator Forward Markets Commission (FMC) allowed NSEL to begin rematerialization and financial closure of e-series contracts after an audit report found that goods were intact in those contracts.

In e-series contracts, investors had held 910kg of gold, 46 tonnes of silver, 19kg of platinum, 62 tonnes of copper, 61 tonnes of zinc, 49 tonnes of lead and 17 tonnes of nickel.

NSEL began rematerialization of e-series contracts from 12 April and financial closure of these contracts from 6 May. Rematerialization is the process by which clients can get their electronic holdings converted into physical form.

NSEL, a subsidiary of Jignesh Shah-led Financial Technologies (India) Ltd, is grappling with a payment crisis for settling dues worth `5,689 crore after it suspended trading activities in July last year following a government order in view of violation of certain norms.

NSEL was given an exemption to operate the spot exchange provided it does not allow short selling. Short selling refers to the concept of a seller selling stock without owning it.

Multiple investigating agencies are probing the payment scam and the attached assets of defaulters.

More From LiveMint

image beaconimage beaconimage beacon