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Although the crises-ridden National Spot Exchange Ltd (NSEL) has come out with a special payout to its small investors, as many as 41 such investors, mainly from Ahmedabad, claim to have been left out.
NSEL says a total of 6,988 small investors were given payments as part of the special payout. However, brokers and traders claim nearly 100 investors from across the country have not yet got their payment.
On August 27, NSEL had announced a special payout for small investors whose dues were up to Rs 10 lakh. It was decided that investors up to Rs 2 lakh would be paid fully. Those whose dues were between Rs 2 lakh and Rs 10 lakh were to be paid 50 per cent. Most of those who claim to have not received payment are in the latter category.
NSEL, on its part, has assured them of payment "in the next few days".
Last month, when the exchange put a list of small investor clients on its website, 41 investors from Ahmedabad eligible to receive the partial payout in line with the announcement found their names missing. They took up the matter with NSEL officials and with the Forward Markets Commission.
"We had made repeated representations to the exchange and to the regulator. We understand it is a technical fault but nobody is responding to our representations,” said a broker, some of whose clients have not received payments.
NSEL says payment to small investors had been effected on the Unique Client Code (UCC). “In case of duplicity in the UCC code, they were left out due to clubbing of UCC and (their) limits crossing Rs 10 lakh,” goes NSEL’s e-mailed response on the matter.
More, these small investors were mostly those whose brokers were only trading members with NSEL; while their clearing member was Indian Bullion Market Association. NSEL maintained that in such cases, the duplication of UCC happened because of use of the same UCC by two trading members.
The exchange also confirmed that the payout amount for these investors was around Rs 2.21 crore and would be disbursed in the next few days.
Jignesh Shah-promoted Financial Technologies had provided a bridge loan to make these payments, aggregating Rs 177.2 crore.
