‘We want the government to take over Financial Technologies’

The National Spot Exchange Ltd (NSEL) Investors Forum, on Tuesday, asked the government to supersede the present management of the commodity exchange with a “respectable” board from the members of the society.

“We want the government to take over Financial Technologies (India) Ltd., the holding company of NSEL, as in the case of Satyam,” said Sharad Saraf, Convenor, NSEL Investors Forum, here while addressing a press conference.

This set up was needed to come out of all liabilities of the exchange, and “then allow some others to run it,” he added. “We met the Forward Markets Commission (FMC), the regulatory agency for commodity trading in the country, and they were telling us they would ensure equitable payment to all investors,” said Mr. Saraf.

NSEL Investors Forum’s objective is to represent and safeguard the interests of more than 15,000 investors in NSEL, which has defaulted in its payout. In the past 14 days, “there have been numerous false statements, inconsistent disclosures, and complete lack of clarity on this issue,” the forum said. The press conference was organised by NSEL Investors Forum in association with Commodity Participants’ Association of India, Association of National Exchanges Members of India and BSE Brokers Forum. The forum posed questions to NSEL, Financial Technologies and MCX, Jignesh Shah, FMC, and the government about NSEL crisis, including why NSEL and Jignesh Shah have been so slow in making public details of the progress of payments and checking of stocks?

Mr. Saraf also said that how Financial Technologies was allowed to run two commodity exchanges, NSEL and MCX. “The directors of NSEL are the employees of MCX, this shows the conflict of interest.”

He also questioned whether Jignesh Shah and his management team still ‘fit & proper’ to run commodity, currency and stock exchanges, and risk several thousand crores of public and institutions’ money? ``Why should MCX licence not be suspended, and also why should these promoters be allowed to run international exchanges and risk India’s reputation as well?’’ he asked.

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