August 5, 2013 / 4:12 AM / 4 years ago

NSEL appoints four-member panel to oversee payouts

Stock brokers trade in a brokerage firm in Kolkata February 16, 2009. REUTERS/Jayanta Shaw/Files

Reuters Market Eye - Financial Technologies (India) FITE.NS shares gain 34.3 percent, recovering from a 73 percent fall in the previous two sessions sparked after the commodity exchange suspended trading in most forward contracts last week.

Chairman and CEO Jignesh Shah said at a news briefing on Monday that its unit National Spot Exchange Ltd (NSEL) has set up a four-member committee, including a former Bombay High Court judge, a former chairman of the market regulator and former chief secretary of the state of Maharashtra.

The announcement comes after NSEL said on Sunday that most of its trading members had proposed settling outstanding contracts over several months after the suspension of forwards trading.

Shah said trading members who do not fulfil their payment obligations would be charged a 16 percent interest, without clarifying on the time periods in which it would be applied.

The exchange is expected to announce the final settlement schedule for all outstanding contracts on August 14, Shah said.

Reporting by Himank Sharma and Siddesh Mayenkar

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