PM Modi’s vision makes entrepreneurs like Jignesh Shah confident of new India

“Come make in India. Sell anywhere, [but] make in India.” Prime Minister Narendra Modi said while introducing his vision of Make in India initiative with the primary goal of encouraging multinational and domestic companies to manufacture their products in India to the public. And it seems that the world is more than ready to embrace this vision, which is already set on a path to become a reality. PM Modi said that the Government in India has always been seen as a regulator and not a facilitator. 

This initiative intends to change this by bringing a paradigm shift in the way Government interacts with various industries. It will focus on acting as a partner in the economic development of the country alongside the corporate sector. This initiative  also seeks to facilitate job creation, foster innovation, enhance skill development and protect intellectual property.

And entrepreneurs and innovators like fintech evangelist Jignesh Shah are happy to back PM Modi's vision of making India a global power. Jignesh Shah being a native entrepreneur created a global business sitting in India. He founded 63 moons technologies over two decades ago with his zest and passion. Then known as Financial Technologies, 63 moons has been a global leader in providing next generation technology innovations. 63 moons is one of the top few tech companies that are capable of bringing high-tech technology revolutions vehemently advocating for a level playing field with international counterparts.

Jignesh Shah's foresight with deep-rooted interest in domestic strength had a strong connection with the real economy and generation of newer jobs and growth opportunities. 63 moons technologies limited is the only group with holistic understanding of financial markets ecosystem and an ability of innovate and establish internationally acclaimed financial institutions that are India centric. The company has been constantly striving and advocating to bring India at a level playing field with international counterparts.

With ace innnovators like Jignesh Shah joining PM Modi's efforts to make India a global hub for industry and start ups, looks like better days are here for India's young and budding entrepreneurs.

JIGNESH SHAH 2.0 AND HIS ‘START UP’ DREAM

Fintech maverick, Jignesh Shah who once built a series of exchanges in India and abroad shown his interest in Indian startup industry which is still in the emerging phase. A man who created over a million of jobs, Jignesh Shah sees a huge potential in a startup ecosystem and strongly feels that if startup ecosystem in the country would be advanced in a right direction then 10 crore jobs can be easily created over the next decade.

Jignesh Shah is confident now that the time has come to start his second innings as the Narendra Modi government is taking lot of initiatives for boosting up the start-up industry. Entrepreneurship is also flourishing in India after the comeback of Modi government. Jignesh Shah is quite hopeful about generating a lot of job opportunities in the next 10 years through the startup ecosystem.

Earlier, Jignesh Shah had set an unprecedented pace within just the first few years of creating a well-developed infrastructure of financial ecosystem, that too, within a decade. Through sheer patience and perseverance in creating robust infrastructure, he effectively combined his intellect and expertise in information technology into founding Financial Technologies (now known as 63 moons technologies) and a string of many world-class exchanges across India and abroad.

Under regulatory orders, Jignesh Shah had to leave the exchange space when a payment default of Rs 5,600 crore in 2013 surfaced at one of his venture National Spot Exchange Ltd (NSEL). However, no agency could prove even a single paisa of wrongdoing on his part, nor on part of his companies.

Jignesh Shah’s 63 Moons Penalized by SEBI

Jignesh Shah is a pioneer in the field of stock and financial markets technologies to have worked hard to create a comprehensive market. He has always looked forward to create a people centric market. With efforts like his, India can actually dream of becoming a powerful economy in the world. With a new vision, FTIL changed its name to 63 Moons Technologies, and is the parent company of 18 technologies in Digital arena.

Previously Financial Technologies (India) Limited (FTIL), 63 Moons Technologies have now been fined by Security Exchange Board of India (SEBI) for not seeking approval from the stock exchange for the name change. The change was effected last year after Jignesh Shah led FTIL fell under the NSEL fiasco. NSEL was promoted by FTIL, which was supposed to stop trading in July 2013. 

In a ten-page order, Sebi said 63 Moons did not seek approval from stock exchanges—NSE and BSE—before changing its name from FTIL and imposed a fine of Rs1 lakh. On May 27^th, 2016, 63 moons technologies had acquired a certificate from the Registrar of Companies (RoC), Chennai to change the name.

Any official statement from 63 Moons Technologies has not been received on the same. However, it applied to the stock exchange later in order to update their records. As per the listing obligations and disclosure requirements (LODR) regulations, any company ought to seek approval for the name changing procedure. The process takes place by submitting a certificate from a chartered accountant who confirms compliance to the conditions as per the regulations.

Sebi quoted, “….it is clear that the requirement of seeking prior approval from the stock exchanges(s) is a condition precedent before filing request of name change to RoC, which in fact has not been met by the notice (63 Moons).”

The penalty of 1 lakh Rupees has been pinned to Jignesh Shah’s venture for the violation. “I note that there are no quantifiable figures available for assessing disproportionate gains or unfair advantage or specific loss suffered by the investors. I also note that no past default against the noticee has been revealed under examination,” Sebi’s adjudicating officer Rachna Anand said in the order. Justice is still aawaited after 4 years in the payment default.

A Merger Order That Hurts Public Interest

In February, the passing of an executive order caused ripples in financial circles across the country, even abroad. Passed by Ministry of Corporate Affairs, it relates to forcing the merger of NSEL with its parent body FTIL. Interestingly, that holds against the ministry’s own circular dated April 20, 2011.

The order stands judicial scrutiny for obvious reasons but what is more baffling is the rationale behind it and the hurry it entails. Billed to be in public interest, it can’t defy public interest any more as it clouds over the fate of over 63k FTIL investors. 

NSEL as a body has its own assets and liabilities. That in turn implies that a merger of this body with any other body is unfair, let alone forced. Currently, it has a crunch of Rs. 5600 crore, and overburdening shareholders of FTIL who have a cash reserve of Rs. 2000 crore serves no one.

Understandably, NSEL traders are under the gun too but how does that make the merger any more sensible than sacrificing one body part to save another.   For the 63k shareholders of FTIL, it would be a hard blow as it erodes their net worth and makes them commercially unviable. Now if that happens—no one gains--not even NSEL stakeholders!

It should be clear beyond all doubt that the cash reserves and all profits that arise on the balance sheet of FTIL belong solely to its shareholders. Anything that takes it away from them is a clear violation of their legal right and must not happen for more reasons than those that meet the eye.

People from across the world are watching how we treat a private sector entity and it can be safely said that the picture being formed is not rosy. It hurts India’s reputation as an investment destination and it hurts PM Modi’s pet project ‘Make in India’ and one of the better known faces that has exemplified it-Jignesh Shah.

The merger order seems to be a classic example of financial imprudence and it is to be seen how the court views the whole issue.  However, the silver lining could lie in the recent developments rounding up NSEL brokers and traders who have for long managed to stay untouched. Could it be that after all this while dissent against the merger finally has investigating authorities ruffled up?