Don’t miss the latest developments in business and finance.

E-series investors redeem Rs 237 crore: NSEL

89% of e-gold and 70% of e-silver units have been credit to investors

Image
Press Trust of India New Delhi
Last Updated : Jun 15 2014 | 10:50 AM IST
Crisis-hit NSEL today said investors who traded in e-series contracts in metals like gold and silver have so far redeemed Rs 237 crore.

"Out of the total Rs 440 crore, NSEL has disbursed Rs 237 crore till date towards settlement of e-series gold and silver units to investors," Saji Cherian, CEO & MD, National Spot Exchange Ltd (NSEL), 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.

More From This Section

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

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

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

NSEL bagan rematerialisation of e-series contracts from April 12 and financial close out of these contracts from May 6. Rematerialisation is the process by which a client can get his electronic holdings converted into physical form.

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

NSEL was given exemption to operate the spot exchange provided it does not allow short selling. Short selling means a seller is allowed to sell without owning stock.

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

Also Read

First Published: Jun 15 2014 | 10:45 AM IST

Next Story