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NSEL and FTIL subjected to unfair treatment

Financial-Technologies-Newshour

Financial Technologies

From July 2013 to September 2013 the Board at NSEL was trying to come to grips with the problem and understand the problem caused by the defaulters. By August 2013, NSEL filed its complaint against defaulters with the Economic Offences Wing (EOW). Later, the EOW registered the complaint of the trading clients. On December 13, 2013, the Forward Markets Commission (FMC) declared FTIL Group and its key officials as not ‘Fit and Proper’ without proper hearing and consideration, which was ritualistically followed by SEBI (in case of MCX-SX) and Central Electricity Regulatory Authority (in case of IEX) despite regulatory compliance in both the exchanges being of the highest order, with an instruction for the Financial Technologies Group to sell its stake in respective exchanges. Meanwhile, NSEL was busy making settlement agreements provoking the aggrieved parties moving to the MPID Court for ratification of agreements, which later got embroiled in litigations.

Finally, NSEL got court order in such cases and now competent authority is trying to sell the assets of defaulters. The process has been periodically interceded with recovery of assets, dialogues and negotiations for settlement, cases against NSEL/FTIL and cases against defaulters. Now when things were getting stabilized and a high-powered High Court Committee was constituted to look into the entire process of recovery, the FMC has come out with yet another vindictive and damaging proposal of recommending the MCA to merge NSEL with FTIL and subsequently change FTIL’s management, which is quite in contradiction to the established conventions of corporate law and could only prove counter-productive as other measures of the FMC have been since the beginning of the problem.

The recurring theme of FMC has been non-cooperation, destabilization and hostility with the NSEL management which has further delayed recovery process and destroyed the growth prospects of a fast-growing financial markets group such as FTIL, which had taken India to the top of the league tables in several aspects of market depth.

 
  • Amardev

    It is glad to hear that NSEL has got the order to sell the assests of defaulters. Very informative article one must read it.

     
  • Parveen Mehra

    NSEL is not intend to escape its community through this unfair injustice which is thoroughly mocked by the people. They are just taking supervision to prove this bogus unfair.

     
  • Akbar

    Good article. FTIL is a leading firm in its convention..concerned people needs to take some drastic steps and all possible measures in contradiction to the impasse.

     
  • Virender prajapati

    It’s a blame game which are playing in adverse to FTIL group industry. Its totally a unfairness or iniquity towards NSEL and FTIL.

     
  • Vinod sinha

    Through the hostile jugement of the FMC corporation and delayed in the process of recovery affecting the growth of a financial markets. Its really a hopeless news for Jignesh Shah.

     
  • Shubham Mittal

    As far as I have had heard lot about Jignesh shah, managing director, he holds a a quarter part of the Market in commodities, equities and more so on. Apart from this he always put his efforts in the contribution of making India a fastest growing country.

     
  • Paras

    I am totally agreed with the thoughts of Mr. Vinod and Mr. Mittal, NSEL has its good repo. In the whole market. Such discoloration act may affects the market share.

     
  • Amit saxena

    This process may take years to prove itself to Mr. Jignesh shah decent. Hope it will happen soon.