No immediate worries on possible NSEL defaults: FMC

FMC chairman says NSEL is confident they will be able to honour their obligations

The chairman of India's Forward Markets Commission said the regulator had no immediate worries that the National Spot Exchange Ltd (NSEL) could default on open contracts after the commodities exchange this week suspended trading in forward contracts.

"At this point I don't think we should have any such apprehension," Ramesh Abhishek said, when asked by CNBC-TV18 about whether there were any concerns that the NSEL would default on any payments to customers.

"The NSEL is very confident that they will be able to honour their obligations for all the open contracts," Abhishek told the news channel.

Shares of NSEL owner Financial Technologies (India) Ltd fell as much 45% on Friday after dropping nearly 65% on Thursday after the suspension of commodities trading at the exchange.

Abhishek added NSEL was due to provide "detailed information" to the regulator on Friday.