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NSEL SUGGESTIONS TO END CRISES

GAURAV SHARMA 4112009008 SOURCE: THE ECONOMIC TIMES

• Settlement time beyond 11 days was not permitted. to move all its existing contracts to trade-for-trade. • Short selling in some contracts.INTRODUCTION-NSEL CRISIS • Existing payment & settlement time T+11. • Notice sent to regulators for bringing down the settlement period. . T+35. • Also. • Acted as a panic among traders. T+25.

• Several members expressed inability to pay all their dues immediately. • Borrowers who cannot meet the normal payment schedule have agreed to pay 16% interest. .SUGGESTIONS • NSEL has proposed a staggered payment schedule. • NSEL requires 5 months to settle this payment crisis.

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.ANALYSIS & CONCLUSION • Separate laws regarding the regulation of spot market needs to be framed. • FMC should act as a regulator and should form a committee for settlement of this. • As FMC had also ordered the audit of NSEL payment schedule and payment crisis. • FMC shall also issue rating of their traders depending on the settlement schedule.

THANK YOU .