ANATOMY OF A CRISIS

A look into what transpired behind the ` 5,600-cr payments crisis at the National Spot Exchange Ltd (NSEL)

FEB 2005: Financial Technologies announces the setting up of National Spot Exchange Ltd (NSEL)

OCT 2008: NSEL goes live; initial contracts have a maximum settlement t cycle of 8 days

SEPT 2009: NSEL commences trading in new contracts with longer settlement cycle (36 days). .

APRIL 2012: Forwards s Markets Commission concludes ld that the exchange allows short sales, in violation to rules. FMC writes to the consumer affairs ministry, which sends a show-cause notice to NSEL

JULY 12, 2013: Consumer affairs ministry instructs NSEL to stop launching new contracts

JULY 22: NSEL announces that it has cut the settlement cycle of all contracts beyond 11 days to a uni- form T+10. The shortening of trade results in liquidity problems

JULY 31: NSEL announces suspension of trade in all one-day forward contracts. It defers settlement of all outstanding contracts con by 15 days

AUGUST: News of the failed settlement leads to t a 64.5% drop in NSEL N shares. Rumours surface s about NSEL having haa insufficient funds

AUGUU AUGUST 5: NSEL board announces it will make 95% payment over 20 weeks

AUGUST 6: NSEL suspends trading in e-series products, bringing all trading to a halt

AUGUST 14: NSEL revises payment schedule, saying members with dues will repay 78% of the total amount over 30 weeks. But members pay only a small portion of their dues in the first three-weeks of pay-in.