NSEL might settle in five months, says Hindu BusinessLine.
The embattled National Spot Exchange Ltd (NSEL) has agreed to settle Rs 5,400 crore due to over 10,000 investors within five months (20 weeks), at the rate of about 5 per cent every week.
This is good. However these investors – the guys who get their “principal” back at 5% a week aren’t coming back to this market. You can’t move back after the move from a high return *on* capital to a fear of return *of* capital.
But there are chinks in the plan, says Business Standard:
NSEL on Friday submitted a detailed road map to the FMC for investors’ payment. But the commodity derivatives market regulator understandably expressed apprehensions about the use of money under the settlement and guarantee fund which, according to existing regulations, can be used for settling the account of the contributor to the account only. This means, one broker’s contribution cannot be used for settling the account of another broker. The FMC raised apprehensions on this ground.