Five and a half years on and the NSEL case is still not over. There have been developments over the years but nothing substantial, while Jignesh Shah and his company Financial Technologies (India) Limited, now 63 moon technologies have faced the brunt of it. However, the pleas have been answered by the Securities & Exchange Board of India (SEBI) which has declared two of the several brokers involved in the case as ‘not fit and proper’. Finally, the proverbial hammer of justice has been stuck upon the brokers who have allegedly, and now evidently, had a big part in robing the 1700 investors of their hard-earned money in the case that amounts to ₹ 5600 crores.
The most important question still remains – when will the investors receive remuneration for their loses? When will they see the face of money that they owned? In a conversation in regard to the NSEL case, Jignesh Shah reveals much information.
While that problem persists, Jignesh Shah, the first person to bring financial technologies to the Indian trading markets, is still standing strong. Numerous allegations might have slowed down operations in the company, but his spirits are intact. It is still not clear whether the borrowers are at fault or the brokers. The first set of action was taken against Jignesh Shah and company that not only destroyed one of the biggest flagbearers of ‘Make in India’ program but has been a massive drop for the commodities markets as well. Certain top-level bureaucrats and politicians have been associated with it, but they have somehow escaped the radar in case they have been truly involved.
There is no doubt that the default happened, but that seems no reason to scrap the initiative which has created several thousand jobs and contributed exceedingly to the Indian economy. What seems like a money default on the surface might just be the tip of the iceberg, while underneath lies a massive conspiracy to stop the FT group in its tracks. It has been mentioned several times by Jignesh Shah that the stiff competition was given to National Stock Exchange (NSE) in commodities, electricity, equity etc. trading has been the reason for animosity against them in the market.
Not even a single month’s notice was given to NSEL before suggesting that the company itself should be shut down. The exchange was eventually shut down with an allegation that all the money was defaulted by Jignesh Shah and company. However, the latest developments have made it clear that the brokers were the party at fault, which is why some of them are under scrutiny and others have been declared not fit and proper.
One thing is for sure though, a lot will have been lost by the time the case is officially closed.