The Economic Offence Wing of the Mumbai police has frozen the bank accounts, including the newly opened settlement account, of the beleaguered National Spot Exchange. This followed a massive search operation conducted by the police at the residence of Jignesh Shah, promoter of NSEL, and Joseph Massey, Chief Executive Officer and Managing Director of MCX Stock Exchange, part of the same Group.

The exchange has claimed that it was unable to make the scheduled payout to investors on Tuesday due to the frozen bank account.

“NSEL is taking legal advice to defreeze the settlement bank accounts and investors and members will be notified in due course,” said the exchange in a statement.

The Forward Markets Commission, which is overseeing the entire settlement process, has been apprised of the recent development, it added.

Apart from Shah and Massey’s residence, the police on Monday conducted a search operation at NSEL’s office and those of 24 defaulters based on the complaints filed by the NSEL Investors Forum.

Recovery measures

Speaking to the media on the sidelines of the Multi Commodity Exchange’s Annual General Meeting on Monday, Massey said any measure to recover money from defaulters is welcome.

“We are always open to any investigative agency. Our top priority is to recover money from defaulters and repay investors,” he said.

The exchange, which suspended operations on August 1, has already defaulted in the last six settlements having not received the requisite funds from the buyers.

NSEL had agreed to settle the entire Rs 5,600-crore trade entered on its platform over 30 weeks.

Meanwhile, according to a PTI report, the Corporate Affairs Ministry has ordered inspection of accounts of National Spot Exchange Ltd and its promoter entity Financial Technologies.

> suresh.iyengar@thehindu.co.in

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