Salil Maaru, 56, never thought he would be second time lucky with his investment made through National Spot Exchange. On the advice of his stock broker, Maaru made his first investment in 2008 and booked a huge profit in 2012.
Brimming with confidence, along with the money saved for his son’s higher education, he collected funds from his family members to invest in NSEL products again in 2012-end; but this time his hopes were dashed when the spot exchange was shut down in July 2013.
“I never thought exchanges could be shut down abruptly. Even then I was confident that they would recover the money by selling the goods stored in the warehouse, since I was getting regular updates on the value of goods stored in my name,” he said.
Maaru is relieved that he has been asked to submit proof of his investments and is hopeful of getting 47 per cent of his dues back.
Haresh Mehta, another NSEL investor, said the issue would finally be settled after 12 years, with the NSEL’s one-time settlement scheme being approved by the NCLT.
In November, NCLT approved a ₹1,950-crore OTS scheme for NSEL investors, resolving a major part of the 2013 payment default crisis, allowing NSEL and its parent 63 Moons Technologies to pay affected traders, who have agreed to waive further claims.
The first-of-its kind settlement would come as a major relief for over 5,600 traders and signifies a crucial step in resolving the decades-old financial issue. It is now for the central agencies to facilitate the payments to investors.
Earlier, backed by the promoter, 63 Moons, NSEL paid about ₹179 crore to 7,053 smaller traders with an outstanding of less than ₹10 lakh.
Ever since the OTS news spread, Hemant Kothari, 52, has been counting the stars for getting the money in time for his daughter’s wedding slated for early next year.
Sharada Saraf, Chief of the NSEL Investors’ Forum, said it is for the first time that a financial dispute has reached the settlement stage, and investors with over ₹10 lakh in dues would get 50 per cent of their total claim amount, which was unheard of in any settlement that has taken place so far.
Even in other NCLT case matters, settlement takes place at rates of 20-25 per cent only, he added.
“As there are half-a-dozen government agencies involved in the matter, we humbly request the Central Government to help expedite this matter so that investors can get their money back at the earliest,” he said.