NSEL case relates to a payment default at the National Spot Exchange Limited that occurred in 2013 involving Financial Technologies India Ltd, when a payment default took place after a commodities market regulator, the Forward Markets Commission (FMC), directed NSEL to stop launching contracts.

What is NSEL in banking?

The National Spot Exchange Limited (NSEL) is India's first spot exchange that was established in view of the then Prime Minister's vision to create a "single market" across the country for both manufactured and agricultural produce.

What is NSEL crisis?

The real culprits behind the NSEL crisis were defaulters, brokers and their clients, who masqueraded as investors. ... As sudden cash withdrawal by depositors results in a run on a bank, likewise the order to settle all outstanding contracts alarmed the market, leading to an otherwise avoidable payments crisis.