Shares of 63 Moons Technologies Ltd gained investor attention on Monday following the company’s board approval of a ₹1,950 crore one-time settlement proposal from the NSEL Investor Forum (NIF). This settlement aims to resolve outstanding dues for unpaid investors, marking a critical development in the long-standing ₹5,600 crore National Spot Exchange Ltd (NSEL) payment crisis. Here’s a detailed look at the settlement and its implications for investors.
Key Details of the Settlement
- Settlement Amount:
- ₹1,950 crore will be paid by 63 Moons Technologies and NSEL to all unpaid investors.
- The payment will be made pro-rata, based on the outstanding claims as of July 31, 2024.
- Investor Distribution:
- No preferential or graded payments.
- All investors will receive amounts proportional to their outstanding dues.
- Approval Requirements:
- The settlement is contingent on obtaining regulatory approvals.
- Requires consent from 75% of unpaid investors by value of outstanding claims.
- Background:
- The NSEL payment crisis, a ₹5,600 crore scandal, emerged in 2013 when the exchange halted trading and failed to settle positions.
Recent Stock Performance
| Time Frame | Stock Gain |
|---|---|
| Past 1 Month | +46% |
| Past 6 Months | +130% |
The significant rally underscores investor optimism about the company’s efforts to resolve the NSEL payment crisis and focus on business recovery.
Board Decision and Next Steps
- Consent Requirement:
- The board authorized the Managing Director to communicate the settlement proposal to NIF.
- A majority consent of 75% of unpaid investors by value is needed to proceed.
- Protecting Company Interests:
- The board emphasized the need to safeguard 63 Moons’ interests while finalizing the settlement.
What This Means for Investors
- For Unpaid Investors:
- The settlement offers a pathway to recover long-pending dues.
- Equal treatment ensures fairness in fund distribution.
- For Shareholders:
- The resolution of the NSEL crisis removes a significant overhang on 63 Moons Technologies, potentially boosting investor confidence and long-term stock performance.
About 63 Moons Technologies
63 Moons Technologies, formerly known as Financial Technologies (India) Ltd, specializes in providing financial market infrastructure and technology solutions. The company has been embroiled in the NSEL payment crisis for over a decade, significantly impacting its reputation and financial standing.
Conclusion
The ₹1,950 crore settlement proposal approved by 63 Moons Technologies is a pivotal step toward resolving the NSEL payment crisis and restoring investor confidence. With strong stock performance in recent months, the company’s efforts to rebuild its reputation and business prospects are gaining traction. However, the success of this settlement hinges on regulatory approvals and majority investor consent.
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Disclaimer
This article is for informational purposes only and does not constitute financial advice. Please consult a financial advisor before making investment decisions.
