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Confidence remains shaky over whether the National Spot Exchange will be able to meet its obligation of around Rs.5500-5600 crore. Should brokers remain unsatisfied over payment proceedings, the following are said to be some of the options before them:
1) Consider Criminal Proceedings
If it is a case of fraud they can file a criminal complaint in the matter. The investigation would take its course. Brokers and investors have already approached the central bureau of investigation to understand the nature of the issue and their options. They have also said to have engaged the services of a criminal lawyer.
2) File A Civil Complaint
They can file a civil suit in a court which would allow them to move court for seeking payment or damages from those responsible. A prominent lawyer has been approached for the same.
3) Opt For A Class action suit
A class action suit would allow the investors, who are several thousand in number, to aggregate their action into one single legal proceeding. This would bring down legal costs and also allow the smaller players to find recourse which they may not have been able to due to lack of resources. Propitiously, the Companies Act which allows such class action suits for the first time was passed only last week.
4) Brokers Pay out of their own pockets
Since many of the investors are high networth individuals, brokers may feel obliged to take some of the hit for the losses, if any, arising out of the NSEL issue. It is questionable as to how much they could actually cover since the business of the brokers themselves have been under stress for the last five years.
