Anjani Sinha blames chief promoter Jignesh Shah for all problems at NSEL

Written by ENS Economic Bureau | New Delhi | Updated: May 8 2014, 15:41pm hrs
Anjani SinhaIn a detailed submission to Mumbai Police Anjani Sinha, has blamed Jignesh Shah for all the problems at NSEL.
In a detailed submission to the economic offences wing of the Mumbai Police, erstwhile managing director of NSEL, Anjani Sinha, has blamed promoter of Financial Technologies Group, Jignesh Shah, for all the problems at NSEL. (Also read: Jignesh Shah arrested)

In the signed affidavit of 54 pages, Sinha has claimed that Shah had set up NSEL to do vyaj badla trading which used to be practised at the BSE but was subsequently banned.

He had a passion to develop a similar mechanism for the commodity markets but MCX is a regulated market where no contracts could be launched without FMC permission. So he came up with a plan for a spot exchange for developing the 'vyaj badla' market for the commodities market.

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Sinha goes on to say that 50 per cent of the profit of the Financial Technologies Group came from NSEL and Shah was involved in the day-to-day management of the exchange. He said the international exchanges floated by Shah did not have much of genuine business.

He has just created a mechanism for circular trading among a group of brokers who have taken membership of these exchanges. Shah compensates these members by cash in India. But through some mechanism, these members route the funds to these international exchanges.

During the period of August-September 2013, he also forced officials of NSEL to sign different types of admissions and submissions, Sinha has claimed. Those documents were sent to him as a hard copy to be typed again. In fact, by mistake, they sent one of those documents by email to me. Shah came to know about this. He became furious and immediately ensured personally standing in my cabin, that the mail was deleted from my personal computer, including server.