NIAG EXTENDS ITS SUPPORT TO OTS

Successful Completion of the One Time Settlement (OTS)

Dear Fellow Investors,

The online voting for the OTS is concluded as planned and I must say that the response from the investors to the OTS is overwhelming.

The first cut tally shows we have received consent representing approx. 64.5% in value i.e. over Rs. 3000 Crores. We are confident that by the time scheme is finalised and filed in judicial forum, the consent would by more than 76%.

After the withdrawal of support by NIAG to the OTS, investors representing only 1.71% i.e. Rs. 79.47 Crores in value have withdrawn their consent. This withdrawal have ready been factored in the above-mentioned figures.

Several investors who had withdrawn their consent have reconsidered their decision and affirmed their consent to the OTS after having understood the finer nuances as regards the MA filed by 63 moons.

Even after closing the online link on 9th Dec 2024, investors have been sending emails giving their confirmation to OTS. These consents will be over and above 64.5%.

This shows that majority of the investors want peace & settlement than fight. We have already fought for more than 11 years with no results. Wisdom says we should close this chapter & move ahead in life rather than fighting endlessly.

While the final collation of Consents is underway, we have received overwhelming consent from investors across India until 9th Dec 24 and will intimate NSEL / 63 moons about the success of OTS for their board to take a note of it and once approved, a formal Settlement Scheme to be drafted and given to us latest by 15th Jan 2025 as agreed between parties.

Our lawyers will expeditiously review the draft settlement scheme concerning the rights of the investors, if any and revert within a max period of 15 days i.e latest by 30th Jan 2025.

This will help NSEL / 63 moons to finalise the settlement scheme addressing our concerns, if any, affecting rights of the investors and file the scheme in court of competent jurisdiction latest by 15th Feb 2025.

This will be first of its kind Settlement in Indian Financial Market. We shall keep updating you on the progress on timely basis

We once again thank you for your support and look forward to such support in future.

Regards,

Team NIF (NSEL Investors Forum)

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What is the OTS?

The proposed One-Time Settlement (OTS) is a resolution to protect the interest of the investors impacted by the NSEL payment default. It provides a structured path towards providing speedy relief/ resolution to the investors.

Why is the OTS important?

It has been almost 11 years since the payment default by defaulters at NSEL and in these years, several proceedings have ensued among a multitude of parties, including proceedings initiated by the Government, regulatory bodies, and agencies to resolve / recover money on behalf of the investors. These also include proceedings and initiatives taken by NSEL for recovering the money from Defaulters, in which NSEL has obtained decrees against most of the Defaulters. NSEL, NIF has rightfully taken certain legal actions against the Defaulters who are the real culprits and from whom monies must be recovered. However, there is still a lot of headway to be achieved for investor’s recovery. As of date, around Rs 4650 crore is still outstanding to be paid to around 5700 investors.

The OTS is important for avoidance of further delay for investors.

Importance of investor consent:

Participation and consent of every investor is very important for the success of this proposed OTS. To achieve a settlement, consent of majority of investors would be required, which will enable NSEL/ 63 moons Group to make necessary interim applications/ initiate relevant proceedings in Court. Once the OTS is approved by the appropriate Courts / forums, 63 moons / NSEL shall make payment of the settlement amount to the eligible investors as per the settlement terms.

Eligibility Criteria:

The OTS is available for investors with dues of over Rs 10 lakhs (original outstanding), as investors with smaller claims have already been paid.

Position of Investors once Settlement is Achieved:

a. For those eligible in category of Rs.10 to 20 lakhs
These investors have already received about 37% [6.6% from NSEL & 30.75% from the Competent Authority]. Now, with this Settlement, they will receive around 42% of the current outstanding.

b. For the rest of the unpaid investors
The remaining unpaid investors have already received about 7% [6.6% from NSEL & 0.75% from the Competent Authority]. Now, with this Settlement, they will receive around 42% of the current outstanding.