The forum also said it will take legal action against crisis-hit National Spot Exchange Ltd (NSEL) if a firm commitment is not given on fulfilling payment obligations, adequately supported by collaterals, by Wednesday. (Agencies)
Responding to the development, NSEL MD and CEO Anjani Sinha said the platform has been used by industry participants satisfactorily for three years, and now holding the promoter exclusively responsible is inappropriate
Chairman Anand Rathi, who is part of NSEL Investor Forum, told reporters here: "We want firm assurance from the Government or the regulator (FMC) along with NSEL to pay five per cent weekly installment of Rs 5,500 crore. If this commitment is given by tomorrow, we will accept, otherwise we will go to the court."
NSEL had halted trading in spot commodities last month following government orders, leading to a payment crisis.
Commodity Participants Association of India along with Association of National Exchanges Members of India and BSE Brokers Forum have formed a joint forum to press their demands related to payments.
They have sought immediate intervention of the government to restore confidence and protect the interest of investors.
Rathi said: "The only way out to do this is to change the ownership (of NSEL). The government should take over all the collaterals of NSEL or defaulting members, processors and buyers and to make NSEL, Financial Technologies (its promoter) pay like it did during the Satyam scam. A committee of prominent people should be formed to sort out the issue to restore investor confidence."
There is an urgent need to put custody and control of assets and bank accounts of all the NSEL Group entities and their promoters under the supervision of government or FMC- appointed committee, he added.
Reacting to this, Sinha said: "We would like to clarify that 23 buyers are required to meet their pay-in obligations and any default would be dealt as per legal default proceedings. The management of NSEL under the supervision of the Board is making all attempts to ensure settlement is achieved."
NSEL had suspended trading and merged the settlement cycles of all one-day forward contracts on July 31. This action was taken due to certain abrupt structural changes in the market place leading to disruption.
The forum also said it will take legal action against crisis-hit National Spot Exchange Ltd (NSEL) if a firm commitment is not given on fulfilling payment obligations, adequately supported by collaterals, by Wednesday.