Will Pay Back in 20 Weeks: NSEL
NSEL might settle in five months, says Hindu BusinessLine. The embattled National Spot Exchange Ltd (NSEL) has agreed to settle Rs 5,400 crore due to over 10,000 investors within five months (20...
View ArticleNSEL Has Settlement Options, But Leaves Much To Answer
In a press release, NSEL has now said that it’s got some options on the table to settle. After meeting with people who are supposed to have given back money in the term they should have returned it,...
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The NSEL Settlement Fund is just 60 Cr?
ET reports the story on the quasi-settlement and has a very disturbing data point: Adding to the sense of crisis, it has emerged that NSEL’s settlement guarantee fund has dwindled to Rs 60 crore from...
View ArticleCapital Mind Quoted in the NSEL fiasco
It feels good when mainstream media quotes you, and even better if it’s twice in the same day! Here’s Sundaresha Subramanian at Business Standard on how NSEL contracts were sold as risk free: These...
View ArticleNSEL Payout To Prefer Small Investors, Can’t Even Trade E-Series Anymore
NSEL investors that put in 10 lakh rupees or less will get “preference” in the NSEL delayed settlement, says ET. Of the 13,000 investors, around 7,000 have invested Rs 10 lakh or less in the product,...
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NSEL Pledges Stock with ICICI, SEBI Tracks Brokers and MCX Ring-Fenced Away
Business Standard is doing some awesome research about NSEL.This is real journalism. Now, they find NSEL’s jeera warehouse with a notice saying the goods are pledged with ICICI Bank! The crisis-ridden...
View ArticleNSEL Tells MoneyLife How They Wanted Us To Think It Works
NSEL had supposedly given an interview to Moneylife where they explain their operations. Now it appears some of this are a little awry. Here’s my take on some. Moneylife: The trend in prices on the...
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HDFC Prudence Fund Buys MCX Shares, Only a Sneeze Worthy 9 Cr.
HDFC Prudence fund has bought Rs. 9 cr. worth shares of MCX, the commodity exchange that is run by Financial Technologies who also run the NSEL exchange where there is a potential default situation....
View ArticleNSEL: May have to Sell Commodities to Return Money, and There are Related...
Economic Times has two investigative pieces on NSEL. First, Avinash Celestine hunts down the list of the 24 entities that own money to NSEL. And finds something interesting: Mohan India is essentially...
View ArticleNSEL Conflict of Interest to be Probed, Govt Gets Tougher, Noose Gets Tighter
The government will probe the conflict of interest in the NSEL issue, where the exchange has defaulted on the last settlement and it’s chairman, Shankarlal Guru is the father-in-law of Nilesh K Patel,...
View ArticleFT and MCX Promoted an Exchange That Shut Down in 2009
Sundar at Business Standard reports that just four years ago, an exchange called SNX (SAFAL National Exchange of India Ltd) was shut down. It was co-promoted by Financial Technologies and MCX, along...
View ArticleNSEL Might Not Have Those Stocks, Say Brokers
The day before NSEL was supposed to make the first payment after it defaulted, the worst fears are now looking like reality. NSEL doesn’t have the stock in the warehouses that it is supposed to have as...
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NSEL Modifies Settlement Plan to 30 Weeks, Adds a Balloon Payment at the End
Remember when NSEL had said that it owes brokers 5,600 crores, and out of that around 2,000 cr. was going to be paid immediately, while about 3,300 cr. would be paid over the next 20 weeks? That was a...
View ArticleLinks: IPO to Invest in NSEL, MCX Brokers Demand Cash Back, Gold Stocks Might...
A quick note to say I’m in the Trader’s Carnival 2013, and my talk is over. If you have any feedback please let me know. Will upload slides soon. In interesting news, supposedly someone created a small...
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NSEL Defaulters are Peons, FMC Is Ticked Off, NSEL Subsidiary is owed 1160...
Kirit Somaiya (ex BJP MP) has found that the directors of Juggernaut Projects, one of the lenders to NSEL are peons at Motilal Oswal, earning Rs. 8000 per month. (I got informal news that Motilal Oswal...
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NSEL Gets Only 81 cr. of the 174 cr. It Must Pay Out
On the eve of the first “payout” by the NSEL to its members, the other parties (“defaulters”) who agreed on a settlement program involving paying over 30 weeks, with precise amounts like Rs. 174 cr. in...
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Kirit Somaiya Finds No/Less Stock In Two NSEL Warehouses
Kirit Somaiya has uncovered more interesting details on the NSEL borrowers. He finds that Mohan India and Tavishi Enterprises are linked (they are two borrowers that owe over 1,000 cr. together) He...
View ArticleNSEL Couldn’t Even Make the First Payout, Management is Sacked
I’d noted yesterday that NSEL had received just Rs. 81 cr. of the 174 cr. it was supposed to pay out today. Turns out they didn’t get much more; they ended up paying Rs. 92 cr. only. NSEL’s board has...
View ArticleNSEL Told To Auction Stocks, Take Punitive Action.
The Forward Markets Commission has rapped NSEL hard once again, in a scathing letter to management. Why was only Rs. 92 cr. paid out? This is way lesser than the settlement plan announcement of Rs. 174...
View ArticleBrokers Were Definitely Guilty in NSEL Fiasco Also: Reader
An alert reader of Capital Mind has called me out on my post that brokers could have been innocent. No chance, he says, and he explains: I was reading your article on The NSEL Scandal/Scam where you...
View ArticleNSEL Gets Just 8 Cr., FMC Toughens SGF Norms, Jignesh Proposes Haircut, FT...
While NSEL paid out Just Rs. 92 cr. out of the Rs. 174 it was supposed to this Tuesday, it is going to be even worse next Tuesday. NSEL defaulters were supposed to have paid in the second installment...
View ArticleNSEL Losing Support, Directors Resign, A Disappointing EndGame
National Spot Exchange (NSEL) Chairman Shankarlal Guru, whose son-in-law owns NK Proteins, a defaulter of Rs. 930 cr. to NSEL, has resigned saying “some bad people have entered the exchange" who should...
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NSEL Defaults Again, FT Loans 177 cr. to Pay Back Small Investors
NSEL has defaulted a second time, this time paying out just Rs. 12.60 cr. after last week’s payment of about half of what it should have paid (Rs. 174 cr.) What has happened though is that Financial...
View ArticleNSEL Update: Audit Shows Less Than 20% of Stock, Untraceable Borrowers,...
The crisis behind the NSEL (National Spot Exchange) is getting more and more murky. The Exchange released client positions behind the 24 members who “owe” the exchange 5600 cr. rupees. These clients...
View ArticleNSEL Chairman Interview: I Didn’t Know
The ex-chairman of NSEL, Shankarlal Guru, meets Zee News for an exclusive. He says he wasn’t aware of irregularities. That some people had told NSEL there was stock, but then there was no stock so the...
View ArticleNSEL’s Insider Nexus, Gets Called For Fraud, Serious Media Attention
The 5,500 National Spot Exchange Scam now gets even more mainstream media attention. Here are some links. Outlook comes out guns blazing, firing at Jignesh Shah and his political clout. And the way he...
View ArticleNSEL E-Series Gold and Silver Audited by Sharp & Tannan, Redemptions Could Be...
A lot of people are worried about what to do with their NSEL e-Series Gold and Silver holdings, which are in demat mode. Should you convert them to delivery? Are they safe? Conversion to delivery seems...
View ArticleNSEL Executives Borrowed from Defaulting Companies
ET notes that NSEL top executives Amit Mukherjee and Kalpesh Shah have “dealings” with one of the biggest defaulters in the NSEL crisis, Mohan India. Crores of rupees, it seems, has been transferred...
View ArticleMCX-SX Licence Renewed, SEBI Disengages Promoter Control
The licence of MCX-SX, the stock exchange whose promoters are the same as NSEL (Financial Technologies and MCX), has been renewed for one year. This is despite a massive default of Rs. 5,500 cr. by...
View ArticleIs Jignesh Shah Trying To Sell His Stake in FT? FMC Says Fit & Proper Status...
A letter by the NSEL Investors Forum chief Arun Dalmia seems to state that Jignesh Shah is in “advanced discussions” to sell his stake in Financial Technologies which he founded. The letter urges the...
View ArticleMore NSEL: Just 85 Lakh in Settlement Guarantee Fund
In FinTech’s annual report, note that NSEL’s settlement guarantee fund was close to non-existent in comparison with the 800 cr. , 60 cr. and even 5 cr. numbers bandied about. (HT Mahesh, @mbp25) 37....
View ArticleAnjani Sinha Does a Madoff To Save The FT Board
The ex-CEO of the National Spot Exchange Limited (NSEL) has now decided to take the entire blame of the 5,500 cr. scam. So first there was a Ponzi scheme (Madoff style) and then, a sudden admission of...
View ArticleFrom the NSEL Desk: Anjani Sinha’s Affidavit
The incredulity in the NSEL scam never ceases to amaze. Latest is that the ex-CEO Anjani Sinha tells a judge that he is the fall guy. Here’s his full affidavit: … (Read On...)
View ArticleNSEL: The 5,500-crore Scam No One Wants to Deal With
Originally written for Yahoo. An innocuous-looking notification from the Forward Markets Commission (FMC) came in on July 12, 2013. And in the offices of the National Spot Exchange Limited (NSEL), a...
View ArticleNSEL: Anand Rathi Raided, Money Laundering, Auditors Flee, Yet Another Default
Since many of you are bored of NSEL, I’ll stop writing about it NO! This is a matter of serious outrage and we can’t let these fellows go scot free! Meanwhile convicts can remain in power, it seems....
View ArticleNSEL News: FIR Filed, Conflict of Interest, Exit from F&O
CBI to probe NSEL, says Chidambaram. And the cops have filed an FIR. The noose is tightening around the Jignesh Shah empire, The Grant Thornton Forensic Audit reveals interesting things. Turns out...
View ArticleNSEL: Show Cause Notices, Empty Warehouses and We-Want-That-Gold
The Forward Markets Commission (FMC) has issued a show-cause notice to Jignesh Shah and FT (Finantech), asking them to defend their “fit-and-proper” status as directors in MCX. They get two whole weeks...
View ArticleNSEL: Mgmt Arrests, E&Y “Checked” Warehouses, Sinha’s Wife Traded on MCX
In the NSEL saga, the endgame is starting to play out. Not to the liking of the top officials of the infamous spot exchange, of course. Two of them, Amit Mukherjee and Jay Bahukhandi are now under the...
View ArticleSEBI was Told About FT Danger in 2007, NSEL Investors Being Probed Too
The Finance Ministry had noted, in 2007, that Financial Technologies, the owner of the defaulted NSEL, was potential not fit-and-proper for running a stock exchange, after Income Tax raids found...
View ArticleNSEL “Settles” with Mohan India, EOW Freezes Jignesh’s Accounts
!A quick update on NSEL: Mohan India has “reached a settlement” with NSEL to pay back Rs. 771 crores out of the Rs. 950 cr. it owes, over the next 12 months. It’s paid back Rs. 25 cr. to date. The...
View ArticleJignesh Shah Resigns from MCX
So it’s finally started to unravel. Jignesh Shah, the founder of FT which started MCX, has now resigned from the MCX board, after the NSEL debacle. "The NSEL crisis has destroyed everything that I have...
View ArticleReads: Remove High-Denom Notes, SC Beats Up Sahara, NSEL Settlement
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View ArticleNSEL Update: Lots of Attachments, Very Little Real Money Coming Back
After a long time, an update on NSEL. The commodity exchange that was basically a large ponzi scheme has unravelled into what seems to be something where everything is wrong and regulators are tying...
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NSEL Fallout: FT and Jignesh Shah Found Unfit and Improper
Financial Technologies and it’s founder Jignesh Shah, along with two key people (Joseph Massey and Shreekant Javalgekar) have been declared “not fit and proper” by the Forward Markets Commission (FMC)....
View ArticleJignesh Shah, Chief of FT, Arrested in NSEL Scam
The bigwig of Financial Technologies (FT), Jignesh Shah, has been arrested in connection with the massive Rs. 5,500 cr. scam of the National Spot Exchange Limited (NSEL) that unravelled in August 2013....
View ArticleLinks: PlanCom Dies, CEO WhistleBlows, Airlines Lose and Jignesh Shah….Knows
One of the best news this weekend: The Potential End of the Planning Commission. The concept of “Plan” expenditure, Centralized Planning for all states, the distribution of our progress into five-year...
View ArticleThe NSEL-FT Forced Merger Is Not About Piercing Limited Liability. It’s About...
Too many articles have come out decrying the order by the Government to merge FT and NSEL. They all quote the same thing – FT was just an investor and therefore it should not bear any liability greater...
View ArticleNSEL Scam Fallout: Top Brokers Arrested for Manipulating Client Codes
Top brokers have been arrested in the NSEL scam, according to Business Standard: City police’s Economic Offences Wing tightened the noose on commodity brokers by arresting Anand Rathi Commodities...
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