The National Spot Exchange Ltd (NSEL), which faces a risk of default after suspending trade, on Monday said it has formed an independent committee to advise and monitor settlement of trade amounting to around Rs. 5,500 crore.
The panel will come out with the settlement plan by August 14, said Jignesh Shah, chairman and MD of Financial Technologies India Ltd (FTIL), one of the promoters a NSEL.
“It is to ensure that whole thing (the settlement) happens in an orderly manner,” he added.
Members of the panel include former Company Law Board chairman Sharad Upasani, former Bombay High Court judge RJ Kochar, former Sebi and LIC chairman GN Bajpai, and former director-general of Maharashtra police D Sivanandan.
The exchange has been in a crisis after it suspended trade in most contracts on July 31. The decision to set up the committee was taken after a joint meeting of commodity market regulator Forward Markets Commission (FMC) and NSEL executives with investors on Sunday.
Meanwhile, recovering from the massive 72% plunge in the previous two sessions, shares of Financial Technologies on Monday rose 31% to R198 on the Bombay Stock Exchange.
NSEL will collate the payment plan from buyers and finalise pay-in and pay-out in consultation with the FMC, before announcing it to the market.