The National Company Law Tribunal (NCLT) in Mumbai has given its approval for a One-Time Settlement Scheme between the National Spot Exchange (NSEL) and the traders’ body.
Under the scheme, NSEL will pay ₹1,950 crore to 5,682 traders based on their outstanding amounts as of July 31, 2024. In return, legal cases against the exchange will be closed, and traders will assign all their rights to 63 moons Technologies, NSEL’s parent company.
Nearly 12 years after its shutdown, and with support from 63 moons, NSEL filed a settlement plan with the NCLT, Mumbai, proposing a full and final one-time resolution with the 5,682 traders. NSEL’s collapse in 2013 left over 13,000 investors with claims totaling ₹5,600 crore.
Previously, the NCLT had instructed NSEL to put the settlement plan to a vote, which resulted in approval from 93% of traders and 91% in terms of the value of outstanding claims.
Back in August 2013, NSEL had paid ₹179 crore, offering relief to 7,053 smaller traders who had claims of less than ₹10 lakh. Despite no direct financial connections to NSEL and 63 moons, the companies’ promoters have agreed to settle the remaining dues.
Neeraj Sharma, Managing Director and CEO of NSEL, acknowledged that the resolution would not have been possible without the positive involvement of the current BJP government, both at the central and state levels.
Sharad Kumar Saraf, Chairman of the NSEL Investors’ Forum (NIF), thanked 63 moons and NSEL for their efforts and expressed gratitude for the support from the central and state governments in facilitating the closure of the issue.
