NSEL investors to urge Finance Ministry for faster execution of OTS

New Delhi, Dec 22 (PTI) NSEL Investors Forum (NIF), an association representing the interests of a large number of investors of National Spot Exchange Limited (NSEL), will approach the Ministry of Finance for faster implementation of the one-time settlement (OTS) approved by the National Company Law Tribunal (NCLT).

NIF Chairman Sharad Saraf said, “The historic agreement between NSEL and 63 moons and investors is a turning point for all investors. It offers a concrete and fair solution after years of legal battles and uncertainty. We will appeal to the Ministry of Finance to help us implement the settlement plan as early as possible.” he said.

NIF remains committed to ensuring the smooth, transparent and complete execution of the OTS agreement and seeks the government’s support at every stage.

He added that he therefore decided to appeal to the Ministry of Finance so that the implementation of the agreement and the final payment of money to investors would be smoother and faster.

Recently, the Mumbai Bench of NCLT approved the OTS scheme between NSEL and NIF. The Settlement Plan provides for the following payments: ₹1,950 crore to 5,682 traders in proportion to their unpaid receivables as of July 31, 2024, against the closure of cases filed against the Group, and transfer of all rights of the traders in favor of 63 months.

Describing the Resolution Plan as fair and reasonable, the NCLT said the plan does not violate any provision of law and is not contrary to public policy.

Earlier, the scheme, which was financially backed by NSEL’s parent company 63 moons Technologies, received a huge boost through the NCLT-mandated voting process; 92.81 percent of traders in number and 91.35 percent in value voted in favor of the proposal.

Appreciating the support and collaboration of NSEL and 63 moons technologies to make this possible despite the absence of any money trail towards NSEL, 63 moons and its supporters, Saraf said investors are hopeful that this will set a precedent for resolving similar disputes across India.

Saraf thanked both the Central Government and the State of Maharashtra and the investigating agencies for their support to OTS.

“With the NCLT approval, we are one step closer and now it is just a matter of time before we get the settlement amount,” he added.

OTS is open to investors with debt. ₹10 lakhs as investors with smaller claims have already been paid. this much ₹750 crore has already been paid to claimants across all segments, thanks to NSEL’s almost single-handed recovery efforts.

Once the transaction is completed, OTS makes an unprecedented settlement payment of 49.3 percent to 64 percent of the amount. Such a solution will provide a roadmap for any financial solution and will also pave the way for future financial solutions.