The proposal by Financial Technologies India Ltd (FTIL) towards resolution of the crisis warrants that all parties like brokers, trading client, government & others participate with a resolution oriented mindset.

1. Why Trading Client Should Join
Hand With NSEL?

2. Overview Of NSEL Crisis
• The Bombay High Court has set up a special
Committee to dispose of these assets and repay
monies owed.
• A retired Judge Hon VC Daga leads this
Committee and it is making speedy progress.
• The National Spot Exchange Ltd (NSEL) Crisis came to light
more than a year ago, when the present Defaulters of the Exchange
failed to honour their pay-in obligations.
• Trading Members who traded on behalf of their clients could not
receive their dues.

3. Action Taken
Investigating agencies have also established the money trail to 22 defaulting
members of NSEL & it is imperative that they honour their pay-in obligations
towards NSEL.
• While 8 defaulters account for Rs 4823 crore of the pay-in, constituting 86% of the
outstanding.
• 11 defaulters have admitted to liabilities worth Rs 2095 crore before various courts.
• ED has seized assets worth Rs 700 crore belonging to the defaulter.
• Defaulter’s assets worth around Rs 5000 crores has been attached by EOW under the
MPID act, 1999.

4. Broker’s Role
• Trading clients traded on NSEL exchange platform through their brokers
under a client–broker agreement.
• The first point of contact for trading clients are their respective brokers.
• Brokers have signed agreement with NSEL, as per which they are bound by
NSEL’s bye-laws.

5. Misguidance by Brokers
• As per media reports, Economic Offence Wings (EOW) remand notes,
the trading clients are claiming that their respective brokers have
misrepresented, miss-sold, used their name & misused the CLIENT-
BROKER Agreement.
• The trading clients may initiate civil & criminal proceedings against the
brokers but this will take a long time & defocus the recovery effort from
the defaulters.

6. FTIL Proposal
• The proposal by Financial Technologies India Ltd (FTIL) towards
resolution of the crisis warrants that all parties like brokers, trading
client, government & others participate with a resolution oriented
mindset.
• As per the proposal 94% of the trading clients can receive 50% to 100%
of their claims, approximately with 3-4 weeks of after all legal formalities
being completed.
• The balance 6% trading clients can receive their claims approximately
within 3-4 months from amounts recovered from defaulters.

7. Source : Media Report & Image for Representation Purpose only