)
Abbey Rodrigues, an Ahmedabad-based trading client of the scam-hit National Spot Exchange Ltd (NSEL), wants brokers to participate in the settlement offer made recently by the latter’s promoter, Financial Technologies India (FTIL), to clear the dues of small traders.
“It is a good proposal and brokers must participate. They are the ones who made us invest in NSEL, where our money got stuck. I belong to the salaried class. It was brokers who prompted us to invest for higher returns. Therefore, brokers must come forward to settle our dues,” said Rodrigues.
Of the 12,735 trading clients, 11,954 invested less than Rs 1 crore in NSEL. According to NSEL data, their cumulative claims stand at Rs 1,509 crore. The remaining 779 high net worth individuals (HNIs), however, cumulatively claim NSEL owe them Rs 3,045 crore.
Of 11,954 small trading clients Business Standard spoke to a dozen who unanimously urged brokers to participate in the FTIL offer for speedy clearance of their dues.
Suresh Dayalal Ajmera, a Mumbai-based small trader whose total receivables in July 2013, when the scam broke, stood at Rs 4.5 lakh, wants both FTIL and brokers to come together and derive a joint formula to quickly pay small investors fast.
“We are waiting for someone to pay us. Once FTIL makes an offer, brokers must accept it and settle dues of small trading clients like us," said Ajmera.
In a proposal to the corporate affairs ministry last month, FTIL, subject to certain clearances and approvals, proposed to pay entirely repay to small trading clients with investments between Rs 2 lakh and Rs 10 lakh (there are 6,445 such). The proposal said such clients would receive their money in four weeks provided brokers participate with at least Rs 500 crore of initial contribution with an equal amount coming in from FTIL.
Clients with investments between Rs 10 lakh and Rs 1 crore (total of 4,901) were proposed to be paid 50 per cent of their dues a cumulative Rs 672.5 crore.
While two public sector undertakings with cumulative receivables of Rs 321 crore will also get 100 per cent, 779 HNIs would receive at least 50 per cent from this offer.
“It is a good proposal and brokers must participate. They are the ones who made us invest in NSEL, where our money got stuck. I belong to the salaried class. It was brokers who prompted us to invest for higher returns. Therefore, brokers must come forward to settle our dues,” said Rodrigues.
Of the 12,735 trading clients, 11,954 invested less than Rs 1 crore in NSEL. According to NSEL data, their cumulative claims stand at Rs 1,509 crore. The remaining 779 high net worth individuals (HNIs), however, cumulatively claim NSEL owe them Rs 3,045 crore.
Of 11,954 small trading clients Business Standard spoke to a dozen who unanimously urged brokers to participate in the FTIL offer for speedy clearance of their dues.
Suresh Dayalal Ajmera, a Mumbai-based small trader whose total receivables in July 2013, when the scam broke, stood at Rs 4.5 lakh, wants both FTIL and brokers to come together and derive a joint formula to quickly pay small investors fast.
“We are waiting for someone to pay us. Once FTIL makes an offer, brokers must accept it and settle dues of small trading clients like us," said Ajmera.
In a proposal to the corporate affairs ministry last month, FTIL, subject to certain clearances and approvals, proposed to pay entirely repay to small trading clients with investments between Rs 2 lakh and Rs 10 lakh (there are 6,445 such). The proposal said such clients would receive their money in four weeks provided brokers participate with at least Rs 500 crore of initial contribution with an equal amount coming in from FTIL.
Clients with investments between Rs 10 lakh and Rs 1 crore (total of 4,901) were proposed to be paid 50 per cent of their dues a cumulative Rs 672.5 crore.
While two public sector undertakings with cumulative receivables of Rs 321 crore will also get 100 per cent, 779 HNIs would receive at least 50 per cent from this offer.
Thus, almost all clients would get at least 50 per cent. For the remaining, the FTIL and brokers should make a joint effort through disposal of attached properties of defaulters and distribute the proceeds.
“Why should we participate in any such offer?" asked Alok Churiwala, BSE Investors’ Forum, adding: “The onus of clearing dues lies with FTIL.”
In its response, FTIL said that investment in NSEL is a negative returns. If brokers join hands, all clients would start getting their money in 3-4 weeks, FTIL added.
