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.

Jignesh Shah and Company move to Supreme Court against the merger order

Financial Technologies India Limited (FTIL), now 63 moons technologies chaired by Jignesh Shah has approached the Supreme Court. The forced merger of NSEL with FTIL which was upheld by the Bombay High Court has been contested by the company at the apex court. Scheduled for 16^th February, the special leave petition (SLP) will be admitted in the court. This is the last of 12 weeks given to the company to move to the court.

 

A spokesperson stated in a mail, “Our chairman Mr. Venkat Chary had said earlier that we will be moving the Supreme Court before the expiry of the 12-week stay period granted by the Bombay high court on the merger order. Accordingly, we have moved the Supreme Court and filed the SLP. We have full faith in the judiciary and continue to believe that the truth and justice shall prevail.” 

The National Spot Exchange Limited (NSEL) which was suspended from the market from trading in 2013. Erstwhile promoted by Jignesh Shah’s FTIL, the merger was initiated by the Ministry of Corporate Affairs (MCA).

Justice M. S. Sonak affirmed that the merger is not forced since NSEL was a wholly owned subsidiary and these two entities are not entirely unrelated. Current chairman Mr. Venkat Chary, however, has argued that this will be the end of the ‘Limited Liability’ concept. The order was upheld in public interest according to the court. According to the statement by the judge, the government deemed the companies fit for merger owing to the extraordinary case of a collapse of the stock exchange.

If the order goes through, it will be the first time in India when two private companies will be merged in public interest under the Companies Act. A verdict in favour of the MCA’s merger order will mean that FTIL will have to assume responsibility for the payment default that amounts to Rs. 5600 crore. It is, however, unclear if that would be correct since no involvement by Jignesh Shah or his company has been found in the case.

Related Article: http://hirharang.com/the-nsel-scam-a-conspiracy-against-jignesh-shah.html

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.

Jignesh Shah’s Orchestrated Downfall

One would think that pioneering the creation of ten new generation regulated multi asset financial markets in the same number of years would guarantee Jignesh Shah the title of a visionary. However, with recent allegations that directly attack him and the foundations he laid, it led to quite the opposite results.

Jignesh Shah took on institutional forces like the National Stock Exchange and the hidden forces behind it. He established himself and his exchange board NSEL as a frontrunner in the security exchanges sector. He took on his competition almost single-handedly and trumped them on the basis of performance and hard work, rather than other murkier ways that were executed by some of his counterparts. With the arrest of Shah in regard of the Spot Exchange crisis on just provisional evidence came as a shock to the whole industry and led to the inevitable fall of the ‘Czar of Exchanges’ as Shantanu Guha Ray calls him in his book ‘The Target’.

The book is a detailed and extensive understanding of both Jignesh Shah’s exponential growth and the dilemmas he faced even before he was accused of being involved in the Spot Exchange crisis. Target’s foreword, written by eminent political personality Suhel Seth states that “Shah’s companies were original IP-based innovations that did not involve any subsidy from the government or the banks for land, labour or taxes. For Shah, “excellence” was the only currency.” This shows his complete dedication towards his work and unwavering faith in what he was doing. To be part of the ‘Make In India’ plan initiated by the government, let alone being one of the few ones leading the programme is a huge deal and Shah’s involvement in it showed the impact he had on the country’ financial sector.

While the cases are still on-going in the courts, Shah has not shown any iota of fear or doubt, which can come with only years of experience and a strong belief over oneself. Whatever the outcome, no one can ever deny that his revolutionary ways have paved the future for how financial markets operate not just in India, but across other nations as well.

Related Article: http://www.pdrizmir.org/return-jignesh-shahs-passport-orders-bombay-high-court/ 

The Enigma that is Jignesh Shah

Battling through hardships and obstacles, Jignesh Shah has reached to the absolute top which is something only a few people can do. Even fewer can boast of achievements like creating 10 new generation regulated multi-asset financial markets in just 10 years across India, Singapore, Dubai and Africa. Jignesh Shah’s resilience towards all the difficulties he has faced shows level headedness and an innate calmness that can come only from years of experience and hard work.

Journalist Shantanu Guha Ray analyses the enigma that is Jignesh Shah in his book ‘The Target’. “Jignesh Shah’s companies were original IP-based innovations that did not involve any subsidy from the government or the banks for land, labour or taxes. For Shah, “excellence” was the only currency.”

Jignesh Shah’s rise to success was resented by many and all his achievements and accomplishments were maligned, but all the investigations against him are baseless even though the envious are trying really hard to make it look otherwise.

In these trying times, Jignesh Shah has kept his cool and has waited so that justice prevails. Ray talks about his unique genius and his unswerving rationality. He even compares Shah with the lead character of Ayn Rand’s ‘Atlas Shrugged’ John Galt because both of them “had to fight against the system to make it understand the benefits of modernization and the advantages of growth” and just like Galt, “Shah, too, was at odds with the inadequacies of a system that did not allow freedom for innovation and instead placed hurdles in the way of the enterprising few.”

With all the recent developments that have been occurring, anyone in Shah’s shoes would have given up and resigned to their fate. But, as Ray put it in his book, his dedication and professionalism towards his work along with his extreme perseverance and coolness the workings of a genius and enigma. One of the biggest exponents of the ‘Make in India’ programme by Prime Minister Narendra Modi, Shah is truly the Czar of Exchanges.

The high flier – Jignesh Shah

It would not only be hard, but counterproductive to displace Jignesh Shah from the stage of commodity markets. For those who don’t know, Jignesh Shah is the Chairman Emeritus of 63 moons technologies, previously Financial Technologies India Limited (FTIL). From the perspective of a viewer, it seems like his purpose is to create extraordinary technologies in the realm of financial markets. Multi-commodity Exchange (MCX) is one of the prime examples of such innovations. It stands at commendable positions around the world in terms of trading silver and gold. Based in Mumbai, the 44 years old business has conquered businesses and operations not only in India but numerous countries abroad as well.

The entrepreneur is believed to have decided to enter the financial markets at the young age of 8. While it might not sound more than the ordinary, he created an empire worth a billion within a decade. Whenever it comes to solutions in the financial markets, FTIL is the name that comes to mind.  Their motto is simple – to provide appropriate and user-friendly services to the clients.

“Our rising volumes and benchmarking against global contracts are a result of our giving top priority to the needs and expectations of customers. While we have no reason to be complacent about our achievement, we would like to make it very clear that our geographical reach is not confined to any specific region,” said Shah in an interview.

The exchanges in FTIL’s catalog are not limited to India. Shah has set up exchanges in countries like Mauritius, Bahrain, Botswana, Dubai, and Singapore. In India, Shah is the person who took the commodity trading online. On his journey to the top, Shah has given endlessly to the country and. Financial Technologies India Limited (FTIL), now 63 moons technologies has created millions of direct and indirect jobs. It has paid crores of rupees in taxes to the government. Moreover, Jignesh Shah has supported the ‘Make in India’ and ‘Digital India’ initiatives and continues to do so. Multi-commodity Exchange (MCX) has given 1% of the nation’s Gross Domestic Product (GDP) over a period of 10 years.

After giving up his plans to move abroad, he worked with the Bombay Stock Exchange (BSE) on the project called Bombay Online Trading System (BOLT). Now, FTIL holds almost a third of the financial markets’ operations.

“I always had dreams of hiring the best and being able to afford pay scales that outmatched all others. Today I can afford to not compromise on salaries when it comes to hiring and retaining the best,” said Shah. "We have a global appetite for global commodities", Jignesh Shah says, "Today, MCX is the second largest exchange in silver in the world, the third largest in gold and the only one to trade Rs. 1,000 crore (Rs 10 billion) of crude a day. We have consciously chosen our basket of commodities, that had enough depth for us to dig our heels into, and allowed trading to the daily volumes of Rs 50,000 crore (Rs 500 billion)".

It is evident that Jignesh Shah is an inspiring achiever and aware of that. He strives to perform under pressure whilst giving the due to his country. It can be said that he is a high flier.

Jignesh Shah: The Explorer of Avenues

The endless innovations introduced by Jignesh Shah in the financial markets are admired through the country. Financial Technologies India Limited (FTIL), now known as 63 Moons has introduced numerous financial and stock markets technologies.

In recent news, the company added to its portfolio and launched 4 new products in its ODIN platform. ODIN is a revered for its database to connect stock exchanges and investors.  It is n NSE competitor and has a market share of 65per cent. Investors with Aadhar and Pan Numbers can instantly start trading. They need to register their signature electronically on ODIN eKYC which allows brokers to open electronic trading accounts.

Small brokers may a mobile trading application ODIN Wave. It competes well with large broking houses.

ODIN Value and ODIN Joytrader launched by the company add service covering and market research and allow investors to play games via joy stick while investing.

ODIN Voice: Uses one-time password (OTP) and voice recognition to seamlessly execute trade orders. It is an interactive trade execution platform and can take instructions in 14 languages. It will cut down costs for brokers by replacing operators and trading terminals.

"It is an example of how artificial intelligence based conversational user interfaces can completely disrupt the way people transact in the future. This brings together the power of AI, Cloud Computing, Natural Language Processing (NLP) and analytics to create a very simple and intuitive experience to an otherwise complex task of investments in the market," said Keshav Samant, President  & CEO, Brokerage Technology Solution, 63 moons.

He also added that the existing ODIN users will enjoy these services for free or depend on their usage. These services are innovative at best and will create a huge social impact by integrating advisory services and provide them to the masses. This will be a great help to retail investors.

The list of platforms and technologies keeps growing under the vision of Jignesh Shah. He is certainly an explorer in the field of financial and stock market technologies.

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