WazirX has completed the allocation of Recovery Tokens to all eligible users under the court-approved scheme. Following the platform’s restart on 24 October, WazirX successfully distributed approximately 85% of rebalanced net liquid platform assets to eligible users within 10 business days, as outlined in the scheme, according to a press release.

The allocation of Recovery Tokens has now been completed within the 60 business day timeline specified in the scheme. Eligible users can view their allocated RTs directly on the Funds page within the WazirX app.

Also Read | Parag Parikh Flexi Cap Fund raises stake in ITC, 10 others; trims Infosys exposure in Dec

Recovery Tokens are issued to scheme creditors on a pro rata basis, aligned with each user’s approved claim. The tokens are designed to ensure that users remain proportionally included in any future recoveries realised by the platform over time.

Under the scheme, recoveries are evaluated in recurring three-month periods. During such an evaluation cycle, when at least USD 10 million is realised, a portion of that value is allocated for the buyback of the Recovery Tokens. If the value recovered by the platform in a period is less than USD 10 million, the recovery claim is not lost; it rolls over into the next period and is combined with new recoveries until a distribution becomes viable.

At present, Recovery Tokens are not tradable. Subject to applicable legal and regulatory requirements, RTs may become tradable in the future.

Here is a simplified example to understand how RTs are being allotted, according to the release.Also Read | MF Tracker: Axis Large Cap Fund turns Rs 10,000 SIP to Rs 58 lakh in 16 years

As of 18 July 2024, Priya, a creditor, had a total claim of $10,000 on the WazirX platform. $546 million is the total claims value as of 18 July 2024, 1:00 pm IST. A total of 1 billion Recovery Tokens will be distributed among creditors. Claim percentage calculation is the formula that determines what percentage of the total claim belongs to Priya.

RT allocation equals the creditor’s claim percentage multiplied by total Recovery Tokens.

This formula calculates how many RTs Priya will be allotted. After all calculations, Priya will be allotted 18,315.0183 RTs.
(Disclaimer: The recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of The Economic Times.)