NCLT Approves NSEL's Rs 1,950 Crore Settlement Scheme

The National Company Law Tribunal has approved a one-time settlement between National Spot Exchange Limited and traders. This Rs 1,950 crore settlement will compensate 5,682 traders with a proportionate payout based on their outstanding dues, finally resolving legal disputes and credit issues dating back to 2013.

The National Company Law Tribunal (NCLT) has given its nod to a one-time settlement agreement between the National Spot Exchange Limited (NSEL) and its traders, enabling the payout of Rs 1,950 crore to 5,682 affected traders, according to an announcement made by the exchange on Friday.

The scheme facilitates proportional payments to traders based on outstanding dues as of July 31, 2024, in exchange for the withdrawal of legal cases against the group and the assignment of all traders' rights to 63 moons, as per NSEL's statement. This settlement effort was filed by NSEL and 63 moons technologies limited before the NCLT in Mumbai for a comprehensive resolution with the traders.

With an overwhelming majority of traders supporting the vote—92.81% by number and 91.35% by value—the approval marks another instance where 63 moons intervenes to assist traders. Previously, in August 2013, backed by 63 moons, NSEL had disbursed around Rs 179 crore to aid smaller traders. The decision has been welcomed by traders relieved from the financial crisis since July 2013, with executives expressing gratitude towards government facilitation.