NSEL scam updates: Jignesh may have to exit FTIL, no bailout for investors
The report pointed out that new exchanges should not be permitted unless a proper regulatory mechanism is in place.However, some analysts pointed out that even ordinary investors have invested in some of their popular retail schemes called e-gold, e-silver and e-copper and there should be a mechanism to bail them out in order to restore investor confidence in the markets.
MUMBAI (Commodity Online): Several new developments in the Rs 5600 cr National Spot Exchange Ltd (NSEL) point to the likelihood of Jignesh Shah of moving out of his holding company, Financial Technologies Ltd, the promoted MCX,the largest commodity bourse in India, MCX-SX and NSEL. Meanwhile, the Economic Offences Wing (EoW) has attached 107 properties of its promoters and indications are that government may not bailout investors.
The Economic Times reported that a Registrar of Companies (RoC) report to be submitted on Friday is likely to put blame on Jignesh Shah and other directors of FTIL for not safeguarding the interests of shareholds and creditors by not excercising due diligence in respect of its subsidiary (NSEL) and should not coninue as directors of FT and NSEL.
The report also specifies that no discussion of the business model of NSEL was made during the FTIL board meetings held since its inception.
Meanwhile, a working group under chairmanship of K C Chakrabarty,Deputy Governor of Reserve Bank of India is reported to have recommended that investors in NSEL were high net worth individuals and aware of the risks involved in the business and hence need not be bailed out with taxpayers money. The group was assisted by Ramesh Abhibshek, Chairman of the Forward Markets Commission and Rajeev Kumar Agarwal, member of the Securities and Exchange Board of India.
The report pointed out that new exchanges should not be permitted unless a proper regulatory mechanism is in place.However, some analysts pointed out that even ordinary investors have invested in some of their popular retail schemes called e-gold, e-silver and e-copper and there should be a mechanism to bail them out in order to restore investor confidence in the markets.
The Economic Offences Wing of the Mumbai Police has attached 107 properties of the accused, involved in the National Spot Exchange Ltd scam.
Head of Economic Offences Wing (EOW), Rajvardhan said that 166 properties, which include residences, office premises, commercial units and land parcels of the defaulters or borrowers of the exchange were identified and out of which 100 properties were attached. The EOW has also attached seven flats of the top officials of the exchange, he said.
