following are email address of prime minster, finance minister & many other affiliates. ========= prime minister [email protected] finance minster [email protected] ---------- other finance ministries affiliates khullarrk@yahoo [email protected] [email protected] ----------- ----------- Department of financial service (Banking Devision), Ministry of consumer Affairs,& corporate affairs pgportal.gov.in/ ------------- Department of economic affairs & affiliates. [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] jpsharma79@gmail manuvettickan@gmail [email protected] [email protected] [email protected] ================== letter format =----------> ================= Respected Sir, SuB: National Spot Exchange (NSEL) Crisis I have been reading with grave concern about the captioned and I have also been approached by investors seeking my intervention in the NSEL default crisis and bringing their plight to your attention for an immediate and decisive resolution. I have personally sifted through the details and my brief assessment is as follows – 1. NSEL was allowed to operate in an unregulated manner by the Government of India through a specific exemption. Needless to mention, this does not mean the Government granted a license to the Exchange to defraud investors. On the contrary, the Government with all sense of purpose, due diligence and a considered analysis would have deemed it fit to grant this exemption. Thus, it would be extremely unfortunate if the Government were to abdicate its responsibility of protecting the investors for this reason. 2. NSEL was an Exchange promoted by Jignesh Shah, who is also the owner and promoter of MCX which has a dominant market share in the Commodity Futures market in India. I think this was reason enough for investors (and rightfully so) to repose their ‘trust’ and ‘faith’ in NSEL, the two basic ingredients for a successful and robust financial market. 3. More recently, the Government of India too deemed it ‘fit’ and ‘proper’ to issue an Equity Exchange license to the same Jignesh Shah. This act of the Government by itself is a manifestation of the confidence and trust that the Government had in Jignesh Shah’s ability to successfully own and manage Exchanges without compromising the interests of a common investor regardless of the regulatory regime. A lot has now been written about the nature of the crisis which you must be well aware of. At the heart of the crisis is – 1. The single largest financial fraud in the history of independent India exceeding Rs 5500 crores. a. The amount involved far exceeds the amount in the Harshad Mehta and Ketan Parekh capital market scam 2. More than 17,000 investors directly affected by the scam a. There are a large number of small investors who would lose their life time savings and would thus be consigned to a future of misery b. There would be large investors whose solvency would be seriously compromised c. This is not to mention of the 1000’s of crores of value eroded in the equity markets 3. This would shake the very foundation of the financial markets in India wherein an Exchange being owned and operated by Jignesh Shah, who is considered ‘fit’ and ‘proper’ to run other and more critical Exchanges is allowed to escape even after having committed a fraud in NSEL It is now apparent and obvious that NSEL is a case of ‘Conclusively Established Fraud’ whereas Satyam Computers was a case of ‘Admitted Fraud.’ The Government, then in the Satyam Computers saga, under the directions and leadership of Honble Prime Minister Dr Manmohan Singh, to protect the interests of a large number of stakeholders had taken decisive and swift action in disbanding the Board of Satyam and had appointed eminent personalities like Deepak Parekh within 3 days of the fraud being admitted. Moreover, within 3 months, Satyam Computers was successfully sold to the Mahindras and it is extremely heartening to see the Company having flourished since then. This act of the Government was unprecedented and it demonstrated to the investor community (both internal and external) of the Government’s resolve to protect all stakeholders and that our great nation believes in the ‘rule of law’ and enforces it as well. It is rather surprising to me that more than 3 weeks have elapsed since the NSEL crisis broke out and there still seem to be newspaper reports related to jurisdictional issues and lack of co-ordination amongst Government agencies. Moreover, the same alacrity and enthusiasm shown by the Government in resolving the Satyam issue seems to be visibly lacking though I would hope that I am grossly wrong in my assessment of the situation. I am sure the Government of India and the Ministry of Finance under the leadership of our Honble PM and yourself understand the gravity of the situation. It was important that I personally bring this matter to your notice and attention which besides directly affecting thousands of investors, has a deep impact on the foundations of our financial markets, the Regulatory mechanism prevalent to monitor Exchanges and the Judicial machinery available to take corrective measures in the event of such frauds taking place and the credibility of the Government in this environment of negativity. I strongly believe the Government needs to on an immediate basis, supersede the Board of NSEL, remove Jignesh Shah and his nominees from the Board and Management of all Exchanges and disgorge him from all his personal & family assets and auction the same to discharge the dues of the investors in NSEL. This is in addition to bringing the rest of the guilty to book. During this period, the Government needs to step in and pay the dues of the investors. I remain in anticipation of an urgent, strong and decisive action by the Government of India to protect the interests of the investor and take the guilty to task and restore the credibility of the Indian regulatory setup. Yours ______________
Posted on: Mon, 02 Sep 2013 06:33:53 +0000