The Indian Fintech Sector Under The Shadow Of Jignesh Shah

The business tycoon, Jignesh Shah, is one of the main reasons behind the development of the Indian FinTech industry. His contributions had an immense impact on the growth and development of the financial sector and unveiled a different side of India in front of the world. Also, the banking sector experienced tremendous growth owing to the various solutions provided by this sector during the emergence of computerization in India. With his flagship product Financial Technologies (India) Limited (FTIL), currently known as 63 Moons Technologies Limited, he brought in a revolution in the financial sector of India.

Shah’s journey started in 1988 when he launched FTIL in the hope of developing the nation. His dream was to create new-generation markets and segments that are people-centric and have a comprehensive market structure. He wanted to establish a Public-Private Partnership (PPP) model to build world-class financial institutions and modern IP-centric financial markets to extend India’s reach. While enriching himself as a by-product, he wanted to empower the nation by providing job opportunities to millions of people. His idea of developing the nation was by providing employment to its citizens that were not only of high-standards but environment-friendly as well. Before our Prime Minister, Narendra Modi, introduced his ‘Make in India’ campaign, Jignesh Shah was already following a strategy that reflected its ideologies.

Shah once belonged from a bourgeois family, but with his impeccable will-power and through sheer hard work, he made his way to the list of billionaires of India. His exchanges designed various solutions that provided assistance to various sectors of society. Numerous share market software were designed that facilitated trading and settlement of Multi-Asset and Multi-Currency products and allowed exchanges to operate in both local and cross-border markets without any complication. Further, it designed technology IP (Intellectual Property) with domain expertise and strong techno-functional teams for generating transparent and efficient next-generation financial markets and helping out various businesses. Apart from that, FTIL introduced a highly versatile, scalable and robust system known as Exchange Technology Framework Product Suite (ETFPS) designed to cover each and every aspect from the trading to settlement in the exchange operations as well. ODIN was another initiative resulted in tremendous success. It attained unattainable results after capturing the second largest market share in the trading terminal segment. Through a single application, one could trade in Multi-Exchanges, Multi-Segment Dealing Desk and Risk Management System. Various other features in advanced technology facilitated higher accessibility, ensured speedy performance, and provided advanced risk management.

  

Why Jignesh Shah-Led FTIL is a Significant Initiative

During the late ’80s, when the Indian FinTech sector was in need of more innovative initiatives to sustain, the first generation entrepreneur, Jignesh Shah, launched his flagship product Financial Technologies India Limited (FTIL) that completely changed its outlook. It provided solutions that were desperately needed for the emerging computerization in the banking sector. Besides that, FTIL created millions of job opportunities throughout the country that were not only of high standards but also, environment-friendly. In other words, the exchange curated an eco-system that resembled the ideologies of the ‘Make in India’ campaign before it was introduced by our Prime Minister in 2014. Today, FTIL stands as a pinnacle that opened up innumerable opportunities for the development of India.

Jignesh Shah, who was once an employee at the Bombay Stock Exchange (BSE), is known as the king of commodity exchange today. During his time at BSE, he wanted to create new-generation markets and segments that are people-centric and have a comprehensive market structure. His dream was to establish a Public-Private Partnership (PPP) model to build world-class financial institutions and modern IP-centric financial markets to extend India’s reach. After working at BSE for some time, he left his job to pursue his dreams. Through strong determination and sheer hard work, he climbed the ladder of success and came up with FTIL in 1988.

FTIL developed numerous share market software that simplified the trading and settlement of Multi-Asset and Multi-Currency products that enabled any exchange to seamlessly operate in both local and cross-border markets. It offered technology IP (Intellectual Property) with domain expertise and strong techno-functional teams for creating next-generation financial markets that are transparent, efficient and helpful for the growing business challenges. Also, FTIL introduced a highly versatile, scalable and robust system known as Exchange Technology Framework Product Suite (ETFPS) that covered every aspect from the trading to settlement in the exchange operations.

In 2016, FTIL introduced its flagship product, ODIN, to the world. The initiative was a tremendous success that left the whole world in awe. It captured the second largest market share in the trading terminal segment. Now, through a single application, one could trade in Multi-Exchanges, Multi-Segment Dealing Desk, and Risk Management System. Also, many features were introduced in advanced technology that facilitated higher accessibility, ensured speedy performance, and provided advanced risk management. Besides providing FinTech solutions, it created approximately 25 lakh jobs in the country and helped in empowering the citizens of India. The total contribution made by FTIL to date amounts to 1% of the overall GDP.

Bombay High Court Backs up Jignesh Shah

The passport of Jignesh Shah, founder of Financial Technologies India Limited (FTIL), was previously confiscated by CBI because of his alleged involvement in the NSEL case that resulted in a payment default of Rs 5600 crore. During his bail, it was suggested by the CBI officials that if given the opportunity, the respondent may try to flee the country. The Bombay high court stood in favor of CBI and allowed the confiscation of Jignesh Shah’s passport.

In September 2017, Jignesh Shah filed a report in a special CBI court seeking the return of his passport but that was also rejected.  

On 5th June 2018, reviewing the case of Jignesh Shah, Justice Prakash Deu Naik found the impounding of the first generation entrepreneur’s passport ‘illegal and contrary to law’ under the Passport Act, section 10 (3). According to it, CBI only has the authority to seize the passport but not impound it. Impounding of the passport can only be done by the Passport authority.     

On behalf of Chairman Emeritus and Chief Mentor of 63 Moons Technologies Limited, advocate Amit Desai filed an application in the Bombay High Court. The passport was impounded in March 2014. Since CBI had already filed a charge sheet and many new developments were already made in the case, the restrictions that have been imposed on him should be lifted. Advocate Amit Desai pointed out that CBI may have the authority to seize a passport under section 102 of the Criminal Procedure Code, but does not have authority to impound it under section 10 (3) of the Passport Act.  

Senior Advocate Amit Desai added, “Special judge has committed a grave error in rejecting the application for the return of passport and further issuing directions to the respondents to forward the passport to the passport authority, to adjudicate on impounding of passport of Shah.’’     

       

Hiten Venegaokar, the CBI counsel, appealed saying that the condition of the case is too sensitive and there is a huge possibility that Shah might abscond once the passport is returned to him.        

The Tale of Jignesh Shah: A Visionary who had a Dream

The business tycoon of India’s exchange market, Jignesh Shah is a visionary whose contributions towards the society are commendable. Owing to his efforts, the Indian capital market witnessed a transformation and received global acclamation. When the Indian exchanges were facing difficulties to survive in the market, the zealous entrepreneur, with his unique ideologies and strategies, opened up various opportunities for the market to flourish. 

According to Forbes, he is one of the richest persons in India. However, he was not always the man he is today. Jignesh Shah belongs to a middle-class family and is an engineering graduate. After completing his degree, he was working at the Bombay Stock Exchange (BSE), an online trading platform, where he fathomed the various patterns and nuances of the market. Being a visionary, he knew that the only way he could attain his dream was by becoming an entrepreneur. Soon, he left his job at the BSE and came up with the fin-tech company Financial Technologies India Limited (FTIL), currently known as 63 Moons Technologies Limited.  

Jignesh Shah wanted to create new-generation markets and segments that are people-centric and have a comprehensive market structure. His aim was the welfare of the country and creating millions of job opportunities for the youth that will create an enormous amount of wealth in the country and eventually empower millions. Before Prime Minister Narendra Modi’s ‘Make in India’ campaign, Jignesh Shah-led FTIL had curated an ecosystem that followed its ideology. According to it, more emphasis should be given to job generation and skill enhancement. At the same time, they should have high-quality standards and be environment-friendly.

Currently, Jignesh Shah’s 63 Moons Technologies Limited is the biggest financial distribution network in India. It's flagship product ODIN has around one million licenses across 600 cities and created 25 lakh jobs that benefited nearly 1 crore households. Besides that, his other exchanges like Multi Commodity Exchange (MCX), Indian Energy Exchange (IEX) are respected exchanges in their respective fields. Foreign Exchanges like Singapore Mercantile Exchange (SMX), Dubai Gold and Commodities Exchange (DGCX), etc. have facilitated India’s routes to international trades.        

Jignesh Shah’s FTIL- A Job Generation Machine

The Founder, Chairman Emeritus, and Chief Mentor of 63 moons technologies limited, Jignesh Shah, is an innovator who opened up various opportunities for India. He wanted to bring development in the country, while, at the same time, enriching him and his flagship product as a subsidiary, and also creating millions of job opportunities for the Indian citizens to help the society. He developed a Public-Private Partnership (PPP) model to build world-class financial institutions and modern IP-centric financial markets that later became the instruments to change the contours of exchange trading in India and other emerging economies from Africa to Asia.  

 The ‘Make in India’ campaign is a crucial initiative by our Prime Minister Narendra Modi that aims towards creating a million jobs and a million opportunities. This initiative was launched soon after he came to power, on September 25, 2014. The goal was not just generating jobs but also, skill enhancement and improving the standard of living while minimizing the impact on the environment. Before this campaign was launched, JigneshShah’s Financial Technologies India Limited (FTIL) was already narrating an ecosystem that followed the ‘Make in India’ ideology.   

FTIL (Financial Technologies India Limited): There were many Trading terminals of FTIL spread across the nation. Each of these terminals had employed around 2 to 3 people. FTIL’s ODIN ran about 3.5 Lakh (350,000) terminals at one given time, creating nearly 7 Lakh (700,000) jobs.

MCX (Multi Commodity Exchange): MCX had an impact on the rural areas. Not only it created numerous jobs in the Exchange industry and trading-related activities but also spun off a number of jobs in the Commodity Market Value Chain. The various jobs available were in Distribution, Grading, Assaying, Valuing, Warehousing, Finance, Risk Management and related activities.

NBHC (National Bulk Handling corporation): NBHC is India's leading provider of integrated commodity and collateral management services. Over the years, it has created substantial job opportunities in the rural areas. Also, NHBC’s efforts helped to cut off the middleman and maximise the farmers’ profits by providing them with the best possible price.

IEX (Indian Energy Exchange): IEX provides electricity at better pricing and has better distribution strategies. IEX’s efforts have helped a lot of small-scale industries to sustain, thus, opening up more job opportunities.

Eco-system verticals: Initiatives of Jignesh Shah likeTicker and Atom have generated job opportunities across the value chain. Financial Technologies Knowledge Management Company (FTKMC) was set up for knowledge enhancement and skill development that trains youngsters and professionals to make them capable of finding better-paying jobs.   

Jignesh Shah: A Business Man or a Philanthropist?

The first generation entrepreneur, Jignesh Shah, is a self-made man who comes from a bourgeois family and made it to the list of the richest men in India. After finishing his Bachelors in Engineering, Shah worked at the Bombay Stock Exchange (BSE) where he learned more about the stock market. He knew that the only way he could achieve his dream of globalizing the market is by being an entrepreneur. Soon after leaving the job at BSE, Shah landed with his flagship product Financial Technologies India Limited (FTIL), currently known as 63 Moons Technologies Limited.

Jignesh Shah wanted to create new generation markets and segments which are people centric and have a comprehensive market structure. His Public-Private Partnership (PPO) model to build world-class financial institutions was a success. The modern IP-centric financial markets he had created became the tool to change the contours of exchange trading in India and other emerging economies from Africa to Asia. Jignesh Shah wanted the Indian financial market to stand tall among other nations and with his ground-breaking initiatives he brought in a revolution which made India an epitome. After the phenomenal success of Financial Technologies Limited India, Shah came up with more initiatives like ODIN, MCX which completely changed the face of India.    

Jignesh Shah wanted to bring a change in his country and that is why he had created an eco-system which narrates the ideology of the ‘Make in India’ campaign by Narendra Modi. His motive was to create more job opportunities for the youngsters of India, which were both of high-standards and environmental friendly. This brilliant strategy of Shah has created over millions of job opportunities across the country.

Shah has also invested himself in various CSR activities like ‘Gramin Suvidha Kendra’ in association with India Post and ‘Pragati’ with Rotary International which focuses on empowering the unprivileged communities with education and training. 

Over the years,  Jignesh Shah has received a series of awards for his contributions towards the society. Institutional Investor had featured him among the 'Top 30 Global Innovators in e-finance' in 2008. He was also listed among the 'Dominant Financial & Futures Industry Leaders for 2008' by Futures Industry Association (FIA), Washington and was awarded the ‘Indian Express Innovation Award’ presented by the then President, Late Dr. A. P. J. Abdul Kalam. Other achievements like getting chosen among the ‘Top 20 Indians’ by CLSA and honoured with the ‘US-India Businessman of the Year’ award also proves his competency.         

The worth of Jignesh Shah

A leading name in the Financial services industry in India today – Jignesh Shah did not enter the business through nepotism. The boy from Kandivali who pursued his Bachelors in Engineering and worked at Bombay Stock Exchange Limited’s BOLT - an online electronic trading platform, is a self-made man. He gained sufficient knowledge about the stock market there and left to make a mark. Later in 1988, he introduced FTIL (Financial Technologies India Limited) to the world. Soon after this Shah started came up with innovations like the MCX, ODIN and BOURSE AFRICA which took the world by storm and Shah became a leading businessman and not only in India.

The entrepreneur had the vision to create new-generation markets and segments that are people-centric and are based on a comprehensive market structure. He wanted to work for the well-being of his country. He created numerous jobs for the Indian population long before the ‘Make in India campaign. 

To create an efficient and transparent price discovery process in the market and generate jobs, incomes and self-employment opportunities across India was his ultimate goal. A quintessential 360-degree financial market infrastructure where all the ventures flow to the people across India.  He wanted to make the whole world notice and respect the remarkable Indian Exchange Industry. India needed state-of-the-art exchanges of global scale and Jignesh Shah took it upon himself to create it. He envisioned providing training lakhs of people to increase employment in the country, and digitalizing the whole transaction process chain across various platforms and introduce India globally.

Jignesh Shah is a hard-working man who never looked out for any government doles and tax exemptions and always paid his loans, payments, debts on time. A true market evangelist who contributed to the government and other local bodies, and introduced new segments which generated more revenues for the government. Through his business, he established his pursuit of public good. He wanted to see India grow and develop, and present it in a very prestigious manner in front of the world and he did.

Jignesh Shah and 63 moons technologies - Is this justice?

The recent raid at the home of Jignesh Shah was yet another pointer on the list of proceedings in the NSEL case that have hampered the functions of 63 moons technologies, previously Financial Technologies (India) Limited. The company and the Chairman Emeritus have been under the radar of the investigative agencies since the National Spot Exchange Limited (NSEL) payment default broke out in 2013. 

Shantanu Guha Ray’s ‘The Target’ opened the eyes of the corporate world in the matter, which is a brilliantly drafted investigative piece on how the conspiracies have led to the halt in the rise of the company and Jignesh Shah. Recently, Sree Iyer took it upon himself to go to the very bottom of the case and wrote the book C-Company. The book revolves around the involvement of P. Chidambaram in the downfall of NSEL. Iyer argues that, with underlying vested interests that point towards other established exchanges of the country, Chidambaram favored the latter and conspired against Jignesh Shah and his company. 

Jignesh Shah and FTIL rose to prominence within a small time which is what led to his comparison with Dhirubhai Ambani. Recently, the Economic Offences Wing (EoW) of Mumbai froze the operating bank accounts of the company which has done more than some damage to the operations of the company. Additionally, the company has been ordered to operate through funds in an escrow account.

“They have taken all kinds of illegal actions against FTIL and the only action left now is to cut both water and power connection to the company,” said FTIL. The company has reacted with vigor as there seems to be no connection with unlawful practices on the behalf of the company. 63 moons technologies has proceeded to the court against the move. The company and Jignesh Shah have formerly cooperated with the investigative agencies and in this particular instance as well. Other than anything else, the freezing of the account will affect the thousand plus employees of the company and their families. It remains to be seen when the company will get justice it deserves.