NSEL investors raise conecrns with Finance Ministry

Investors stuck with the crisis- hit NSEL today met Economic Affairs Secretary Arvind Mayaram and sought that investigative agencies should take stringent action against those members who are not making payments.

"NSEL investors today met me and shared their grievances. Will send grievances of NSEL investors forum to Consumer Affairs secretary. (I) have no jurisdiction over FMC or NSEL," Mayaram told reporters after the meet.

NSEL Investors Forum today approached the finance ministry as the exchange was able to pay Rs 92 crore only on August 20 against Rs 174.72 crore scheduled on the first day of pay-out.

The meeting comes at a time when the government is considering to bring commodity market regulator Forward Markets Commission (FMC) under Finance Ministry.

When contacted, NSEL Investor Forum Chairman Sharad Kumar Saraf said: "We raised our concerns with economic affairs secretary Arvind Mayaram. We demanded to direct investigative agencies to go after borrowers of NSEL".

There are around 13,000 investors including 7,000 small investors whose Rs 5,500 crore are stuck in the NSEL.

"Government has given power to FMC but that power is not used properly," Saraf said.

Last week investors had met Food and Consumer Affairs Minister K V Thomas and demanded to merge the NSEL with its promoter firm Financial Technologies (India) Ltd (FTIL).

NSEL, promoted by Jignesh Shah-headed FTIL, is facing a crisis after it suspended trade on July 31, raising concerns about possible default of Rs 5,500 crore owed by 24 buyers/ members.