FMC allows NSEL to pay directly to IBMA members

Commodity market regulator FMC has allowed NSEL to pay directly to members of IBMA which was set up by the bourse and is also one of its investors.

The Indian Bullion Market Association, a subsidiary of the crisis-ridden NSEL, had reportedly invested about Rs 1,200 crore in the bourse.

In a letter to NSEL, FMC has directed that the pay outs to the members registered under IBMA can be made directly from the NSEL escrow account.

However, the regulator added that settlement of dues of members of IBMA directly from the NSEL escrow account should not in any way be construed so as to absolve NSEL or IBMA of any of their liabilities arising out of the agreements between them.

In August last year, the Forward Markets Commission had directed NSEL that all pay-in received from defaulter members shall be deposited in an escrow account and all the disbursement from the said account shall be as per the instructions or prior approval of the FMC.

NSEL suspended trading following a Consumer Affairs Ministry directive asking the bourse not to launch any new contracts till further order as it found violations of government norms in trading at the bourse.

So far, the exchange has defaulted in 20 pay outs.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • The economic survey falls in step with the BJP’s election manifesto

    It’s always tough to find something wrong with the annual economic survey as it only articulates the government’s desire to set its house in order

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Why higher education needs innovation

India is such a great country that it creates complexity ...

Zehra Naqvi

We must overcome the fear of death

It is the biggest irony that the only thing that’s ...

Dharmendra Khandal

Jawai leopards and locals can coexist peacefully

At first glance, the Jawai landscape seems like a large ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture