63 moons, the promoter of defunct National Spot Exchange, and NSEL Investors Forum plan to open an Escrow Agent and Monitoring Authority to oversee the disbursement of ₹1,950 crore settlement.

Earlier, both 63 moons and NSEL Investors Forum had signed a formal Settlement by way of a Scheme of Arrangement and filed it with the National Company Law Tribunal, Mumbai. To ensure the interest of investors are protected, an Escrow Agent and Monitoring Authority will be appointed to oversee the disbursement of funds to investors, said NSEL Investors Forum (NIF) in a statement on Thursday.

Sharad Saraf, Chairman, NIF said the move offers a concrete and fair resolution after years of legal battles and uncertainty.

Under the terms of the agreement, 63 moons will make a one-time payment of ₹1,950 crore as a full and final settlement to the investors and in turn, investors will assign their claims against defaulters and others in favour of 63 moons.

The settlement will be win-win for both parties as investors are certain to get their monies with a haircut and 63 moons group will be free from legal proceedings, said NIF.

The majority of the investors in number and value have voted in favour of the Settlement, which shows that the investors have a preference towards peace and settlement than fight legally with no certainty, it added.

In 2013, about 24 investors defaulted on NSEL trading platform and this left thousands of investors waiting for the recovery of their dues. Since then, over 7,000 investors with claims up to ₹10 lakh have been fully paid.

Despite multiple legal proceedings and Government interventions, the recovery from the defaulters have not been encouraging for about 5,600 investors having claims of above ₹10 lakh. These investors had received just about 7 per cent over last 10 years.