Latest news with #NCLT
Time of India
5 hours ago
- Business
- Time of India
NSEL investors forum seeks Maharashtra CM's support for Rs 1,950-crore settlement
File photo of Maharashtra chief minister Devendra Fadnavis (PTI) NEW DELHI: The NSEL Investors Forum (NIF) has written to Maharashtra chief minister Devendra Fadnavis, seeking his support for a proposed one-time settlement worth Rs 1,950 crore between investors and the National Spot Exchange Ltd (NSEL). This long-awaited settlement aims to bring major relief to thousands of traders whose funds have remained stuck since the NSEL payment crisis of July 2013. In a letter addressed to the chief minister on June 19, the forum appealed to the state government to avoid any adverse actions that could hinder the settlement process. It stated that "any decent or negative response from the State/ Competent Authority/ EOW in the NCLT might derail or delay the settlement process." To facilitate a smooth resolution, the forum has requested the state government to designate a senior legal expert with expertise in company law to represent and guide the state's stance before the NCLT. "We humbly urge the chief minister to issue necessary directions to relevant authorities and departments to avoid any hasty or negative steps that may derail or delay the proposed settlement," the forum stated. The forum emphasized that after nearly 12 years of chasing various recovery mechanisms, a consensus has finally been achieved between NSEL and its investors. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Adidas Three Shorts With 60% Discount, Limited Stock Available Original Adidas Shop Now Undo The proposed settlement scheme has been formally submitted under the Companies Act to the National Company Law Tribunal (NCLT), Mumbai, marking a major step toward closure for affected traders. As per the settlement plan, a total of Rs 1,950 crore will be distributed among 5,682 traders in proportion to their outstanding dues as of July 31, 2024. The NCLT has already admitted the company petition, with the final hearing scheduled for July 11. NSEL, supported by its parent company 63 moons technologies, filed the Scheme of Settlement before the NCLT to facilitate this one-time, amicable, and full-and-final resolution for the affected traders. The proposal itself originated from the NSEL Investors Forum (NIF), which represents a significant portion of the impacted trading community. This is not the first time NSEL and 63 moons have attempted to offer relief. In August 2013, they disbursed around Rs 179 crore to assist 7,053 smaller traders, each with outstanding amounts of less than Rs 10 lakh. PTI
Mint
7 hours ago
- Business
- Mint
Nudged by finance ministry, PSBs to develop new framework for NPA recovery; special teams to focus on high-value loans
Public sector banks (PSBs) are drawing up a plan to lay a threshold of ₹100 crore and above and set up specialized teams to recover bad loans, two persons aware of the matter said. The plan being pushed by the finance ministry also involves possibly writing down or liquidating cases where the default amount is low but recovery is difficult, and where the transaction cost of pursuing the case and making a recovery is more than value of bad loan, the first person quoted above said. These banks have also been asked to restructure their legal teams if they have failed to secure resolutions from courts and tribunals for cases being pursued under Insolvency and Bankruptcy Code (IBC) at the National Company Law Tribunal (NCLT). In addition, each bank has again been asked to identify afresh their top 10 stressed assets and begin the process of resolution of these accounts directly under the supervision of a high-level bank official in the rank of managing director and chief executive officer, the second person quoted above said. Also read | PSBs to launch new schemes to support startups, gig workers under new reform set for FY26 launch Queries sent to the ministry of finance remained unanswered till press time. The fresh move comes in the backdrop of net non-performing assets (NPAs) of PSBs declining to a multi-year low of 0.52% and net profits rising to ₹1.78 trillion during financial year ending 31 March. While banks have seen big improvements in NPAs, the government wants them to remain alert and not lose focus on the drive to chase bad loans. A fifth of PSBs loan exposure is in sensitive sectors such as capital markets and real estate. 'There is approximately 30% of total outstanding in higher-than- ₹100 crore accounts while the number is significantly low when it comes to count of accounts. By categorizing stressed assets into homogeneous groups, banks can develop standardized processes for resolution and liquidation. This also enables the formation of specialized teams with specific expertise tailored to each category and helps in better forecasting and planning. Also, the appointment of resolution managers with expertise in NPA workout can facilitate effective resolution strategies, potentially leading to faster recovery," said Gayathri Parthasarathy, leader, financial services, PwC India. Also read | Centre targets ₹20,000-25,000 crore dividend from public sector banks in FY25 'While there are no published figures on the share of high-value stressed assets (above ₹250 crore), such a share could be anywhere in the range of a third to a half, which justifies the need for specialized teams or verticals. This also means that lower-value stressed assets could constitute at least half of the total, where faster resolution through means such as one-time settlements, standardized mechanisms, or writeoffs would be financially beneficial. Hence, segregating stressed assets by value should conceptually improve operational focus, speed of decision-making, efficiency of resource allocation and effectiveness of monitoring," said Vijay Mani, banking and capital markets leader, Deloitte India. 'Practically, however, lenders will also have to ensure that lower-value delinquencies do not become business-as-usual or accepted as a norm due to any level of unintended neglect in governance and risk management," he said. According to a CareEdge report, the overall gross NPAs of the banking sector fell by 11.3% year-on-year, to ₹4.16 trillion as of March, compared with ₹4.68 trillion in the previous year. PSBs significantly led this recovery, with their gross NPAs declining 17% on-year to ₹2.94 trillion. The gross NPAs of PSBs stood at ₹3.39 trillion in FY24, although fresh slippages rose slightly by 7.8% during the year. Also read | PSBs to finance ₹10 trillion for green energy projects by 2030
Time of India
9 hours ago
- Business
- Time of India
NSEL investors forum seeks Maharashtra CM's support for Rs 1,950-crore settlement
The NSEL Investors Forum (NIF) has written to Maharashtra Chief Minister Devendra Fadnavis, seeking his support for a proposed one-time settlement worth Rs 1,950 crore between investors and the National Spot Exchange Ltd (NSEL). This long-awaited settlement aims to bring major relief to thousands of traders whose funds have remained stuck since the NSEL payment crisis of July 2013. In a letter addressed to the Chief Minister on June 19, the forum appealed to the state government to avoid any adverse actions that could hinder the settlement process. It stated that "any decent or negative response from the State/ Competent Authority/ EOW in the NCLT might derail or delay the settlement process." To facilitate a smooth resolution, the forum has requested the state government to designate a senior legal expert with expertise in company law to represent and guide the state's stance before the NCLT. Live Events "We humbly urge the Chief Minister to issue necessary directions to relevant authorities and departments to avoid any hasty or negative steps that may derail or delay the proposed settlement," the forum stated. The forum emphasized that after nearly 12 years of chasing various recovery mechanisms, a consensus has finally been achieved between NSEL and its investors. The proposed settlement scheme has been formally submitted under the Companies Act to the National Company Law Tribunal (NCLT), Mumbai, marking a major step toward closure for affected traders. As per the settlement plan, a total of Rs 1,950 crore will be distributed among 5,682 traders in proportion to their outstanding dues as of July 31, 2024. The NCLT has already admitted the company petition, with the final hearing scheduled for July 11. NSEL, supported by its parent company 63 moons technologies , filed the Scheme of Settlement before the NCLT to facilitate this one-time, amicable, and full-and-final resolution for the affected traders. The proposal itself originated from the NSEL Investors Forum (NIF), which represents a significant portion of the impacted trading community. This is not the first time NSEL and 63 moons have attempted to offer relief. In August 2013, they disbursed around Rs 179 crore to assist 7,053 smaller traders, each with outstanding amounts of less than Rs 10 lakh.
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Business Standard
12 hours ago
- Business
- Business Standard
NSEL investors forum seeks Maharashtra CM's help for ₹1,950 cr settlement
The NSEL Investors Forum (NIF) has written to Maharashtra Chief Minister Devendra Fadnavis, seeking his support for a proposed one-time settlement worth ₹1,950 crore between investors and the National Spot Exchange Ltd (NSEL). This long-awaited settlement aims to bring major relief to thousands of traders whose funds have remained stuck since the NSEL payment crisis of July 2013. In a letter addressed to the Chief Minister on June 19, the forum appealed to the state government to avoid any adverse actions that could hinder the settlement process. It stated that "any decent or negative response from the State/ Competent Authority/ EOW in the NCLT might derail or delay the settlement process." To facilitate a smooth resolution, the forum has requested the state government to designate a senior legal expert with expertise in company law to represent and guide the state's stance before the NCLT. "We humbly urge the Chief Minister to issue necessary directions to relevant authorities and departments to avoid any hasty or negative steps that may derail or delay the proposed settlement," the forum stated. The forum emphasized that after nearly 12 years of chasing various recovery mechanisms, a consensus has finally been achieved between NSEL and its investors. The proposed settlement scheme has been formally submitted under the Companies Act to the National Company Law Tribunal (NCLT), Mumbai, marking a major step toward closure for affected traders. As per the settlement plan, a total of Rs 1,950 crore will be distributed among 5,682 traders in proportion to their outstanding dues as of July 31, 2024. The NCLT has already admitted the company petition, with the final hearing scheduled for July 11. NSEL, supported by its parent company 63 moons technologies, filed the Scheme of Settlement before the NCLT to facilitate this one-time, amicable, and full-and-final resolution for the affected traders. The proposal itself originated from the NSEL Investors Forum (NIF), which represents a significant portion of the impacted trading community. This is not the first time NSEL and 63 moons have attempted to offer relief. In August 2013, they disbursed around Rs 179 crore to assist 7,053 smaller traders, each with outstanding amounts of less than Rs 10 lakh.
India.com
2 days ago
- Business
- India.com
Investors Forum Seeks Maharashtra CM Fadnavis's Support For Rs 1,950 Cr Settlement Plan
In a major step toward resolving the long-standing NSEL payment crisis, the NSEL Investors Forum has reached out to Maharashtra Chief Minister Devendra Fadnavis, seeking the state's support for a proposed Rs. 1,950 crore One-Time Settlement (OTS) between the National Spot Exchange Limited and its investors. The forum, which represents a significant number of affected investors, has emphasised the importance of government cooperation in facilitating the scheme, cautioning against any intervention from state agencies that could impede its progress. According to the Forum, the settlement—nearly twelve years in the making—promises a recovery rate of approximately 48%, far surpassing the recovery benchmarks seen in typical insolvency proceedings. Investors have agreed to assign their claims to 63moons in return for the settlement amount, even as enforcement actions under MPID and PMLA Acts continue against defaulters. Earlier this year, NSEL initiated a formal Scheme of Arrangement under the Companies Act, 2013. Following NCLT's direction, a month-long postal ballot process was conducted, where over 92% of participating investors, by number and value, voted in favor of the proposal. The final hearing at the NCLT is slated for July 11, 2025. In the lead-up, the Forum has urged the Chief Minister to issue appropriate guidance to relevant state bodies, emphasizing the importance of a unified approach to avoid delays or disruptions. The forum also suggested appointing an expert in company law to represent the state's interests effectively before the tribunal.
