By Nesil Staney
The NSEL scam, which saw investors lose as much as Rs 5,600 crore in 2013, is set for a closure soon, with 93% of traders voting for an one-time settlement (OTS) amount of Rs 1,950 crore – 42% lower than the payable amount. The amount will be paid to traders in proportion to their outstanding as on July 31, 2024.
According to a press release on Tuesday, NSEL and its parent company 63 Moons said the OTS with 5,682 traders was proposed by the NSEL Investors Forum (NIF) after a decade-long legal and financial ordeal.
The NSEL scam involved brokers mis-selling NSEL products promising assured returns without actual commodity delivery, and manipulation of client records. Investigations followed, with the Enforcement Directorate and the Economic Offenses Wing probing the matter. It led to multiple chargesheets and attachment of assets worth over Rs 3,200 crore, apart from regulatory penalties against several brokers.
The settlement would mean a closure of legal cases against Financial Technologies India (FTIL) which was rechristened as 63 Moons Technologies. Money of these 5,682 traders was stuck in the NSEL payments scam that happened in July 2013. While repayments do not take account of inflation, it is noteworthy that almost all the investors voted for the OTS.
Soon after the scam, in August 2013, NSEL, with the support of 63 Moons, paid off Rs 179 crore to 7,053 smaller traders with outstanding of less than Rs 10 lakh. NSEL has claimed that the delay in settlement was because of Ramesh Abhishek, then chairman of the Forward Markets Commission.
The settlement application was earlier filed with the National Company Law Tribunal in Mumbai. In November 2024, brokers associated with NIF proposed an OTS of Rs 1,950 crore. The proposal received initial consent from the investor action group (NIAG). Disagreements over handling of attached assets and the approach to the Maharashtra Protection of Interest of Depositors court, however, led to the NIAG withdrawing its support in December 2024. This temporarily halted the settlement process.
In mid-December 2024, the settlement process received 65% approval from the investors forum. 63 Moons had reached a formal agreement with claimants on March 6, 2025.
On Tuesday, NSEL received an overwhelming support for the settlement from 93% of claimants. The landmark settlement will be under the oversight of an escrow agent and a monetary authority to ensure transparent payouts.