gfiles magazine

August 22, 2019

GOVERNANCE : Did NSEL-FTIL : Illegally transfer funds?


On July 31, 2013, the NSEL exchange was officially asked to close down shop after it defaulted on payments to the tune of Rs. 5,600 crore to its 13,000 investors. Despite the stop order by the concerned ministry, market regulator and the Bombay High Court, NSEL allegedly received Rs. 65 crore from NAFED and illegally transferred Rs. 31 crore to FTIL in 2013 well past it ceased to exist.  However, when the matter came to light, FTIL returned the amount Rs. 31 crore to NSEL on January 25, 2019, and called it an ‘inadvertent’ and ‘unintentional’ mistake.

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