NSEL issues echoes in Parliament

BJP's Prakash Javadekar says around Rs 6,000 crore invested by small investors at risk because of payment default

The controversy surrounding National Spot Exchange Ltd (NSEL) echoed in Parliament for the first time on Monday, with Bharatiya Janata Party (BJP) leader Prakash Javdekar raising the issue during zero hour.

Alleging that the NSEL payment crisis was a scam of massive proportions in line with the Harshad Mehta and Ketan Parekh scandals, Javdekar sought to know the response of the government on the issue.

He said around Rs 6,000 crore invested by small investors was at risk and alleged that the government was mum on the issue because of the likely involvement of a senior cabinet minister. Javdekar, however, did not name the minister.

Meanwhile, a group of investors of NSEL on Monday met the consumer affairs secretary to put forward their point of view and also seek the government's intervention into the whole issue.

The crisis surfaced when the exchange, promoted by Jignesh Shah-run Financial Technologies, had on July 31 suspended trading in all contracts except the e-series ones without assigning a clear reason. Later, it suspended trading in its e-series products too, bringing the exchange to a complete halt. About 15,000 investors find themselves embroiled in the payment mess.