63 Moons Technologies has approved a ₹1,950 crore One-Time Settlement (OTS) proposed by the NSEL Investors Forum, resolving the long-standing NSEL crisis.
The collapse of the National Spot Exchange Limited (NSEL) in 2013 left a trail of financial turmoil, with numerous traders and investors facing unpaid claims. The fallout led to protracted legal battles and efforts to recover dues from defaulters.
The NSEL Investors Forum (NIF), representing a substantial number of affected traders, has been instrumental in pushing for a resolution. After years of negotiations, the Forum has proposed a One-Time Settlement (OTS) to address the crisis and bring closure to the unresolved financial disputes.
Key Highlights of the ₹1,950 Crore OTS Proposal
- Proposal and Approval:
The NSEL Investors Forum submitted the ₹1,950 crore OTS to 63 Moons Technologies, aiming to assign the rights and claims of unpaid traders to the company.
- Board Decision:
On December 14, 2024, the Board of Directors of 63 Moons reviewed and approved the proposal during a meeting. The decision is contingent upon securing necessary legal clearances and ensuring the company’s interests are safeguarded.
- Objective of the Settlement:
The OTS seeks to resolve specific legal disputes, transferring the rights to 63 Moons, enabling the company to focus on recoveries from defaulters through decrees and liquidation of attached assets.
Timeline for Implementation
The settlement process follows a defined timeline:
- Drafting of the Scheme: By January 15, 2025.
- Internal Review: By January 30, 2025.
- Judicial Filing: By February 15, 2025.
Significance of the Decision
- Closure for Affected Traders:
The settlement represents a crucial step towards addressing the grievances of unpaid claimants. By transferring the rights to 63 Moons, the company is positioned to pursue recoveries with greater focus.
- A Milestone in Corporate Governance:
This decision reflects a commitment to resolving legacy issues and moving forward with a clearer financial outlook.
Market Reaction
Following the announcement, the share price of 63 Moons Technologies hit the upper circuit limit of 5% at ₹895.50 as of 12:05 PM on December 16, 2024.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
