New Delhi: Crisis-hit NSEL on Friday said it will commence rematerialisation of its e-series gold contracts from April 12 onwards, a move that would benefit 33,000 investors.
Rematerialisation is the process by which a client can get his electronic holdings converted into physical form.
National Spot Exchange Ltd (NSEL), which is a subsidiary of Jignesh Shah-led Financial Technologies India Ltd, is grappling with a payment crisis for settling dues worth Rs 5,500-crore after it suspend trading activities in July last year following a government directive.
Last month, commodity markets regulator Forward Markets Commission (FMC) had given it the permission for rematerialisation and financial close-out of NSEL's e-series contracts, as forensic auditors did not find anything adverse against such contracts.
"The Exchange shall commence the process of rematerialisation (of e-series contracts) from April 12, 2014. This will be followed by financial closure of the balance stock from May 6, 2014," NSEL said in a statement.
The exchange will accept request for rematerialisation from unit-holders from April 12 till April 23.
Subsequent to the rematerialisation process, the exchange will commence the 'Financial Closure' of the balance units of e-series contracts starting from May 6, it added.
According to the NSEL, the process of rematerialisation will be carried out by the exchange as put in place by the depositories. The exchange will provide the updated location, depository, and denomination-wise free stock position and the updated stock report on a daily basis.
NSEL also said rematerialisation will only be feasible for those unit-holders who hold units either matching or exceeding the denominations offered by the exchange of the underlying metals.
