the target book reviews

Who will find Jignesh Shah’s missing key?

Jignesh Shah, the pioneer in next generation find tech products and solutions had the key for innovation that revolutionized modern financial markets. He and his group FTIL possessed deep domain expertise of financial markets ecosystem and an expertise to establish multi-asset exchanges in India of international repute. Other exchanges have by far not been successful in either product innovation or creating new markets due to their shallow understanding and lack of domain expertise about Indian financial markets ecosystem.

Jignesh Shah opened doors in the financial markets that no other big corporate even dreamed of doing in India. He paved a gateway for Indian financial markets to connect with global markets. He opened up foreign markets and players to India. However, with his fall, the situation has changed. The upcoming players have not been able to bring in innovation and futuristic solutions that would take the financial markets ahead.

Somehow, the key seems to have been lost. Will someone else find the key or will Jignesh Shah only have to open new doors for the nation?

For more, read the book ‘The Target Book’ by Shantanu Guha Ray.

For more information check The Target Book Reviews.

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the target book reviews

The Target reveals a case that has rattled the financial circles of India

Breach of conduct in corporate governance is quite unsettling and throws off those who consider themselves protected by the law of the land. I was wondering, Who do these people turn to?

This is in context to the NSEL case that surfaced in 2013 and shook up the financial roots of India. I recently came across this book by Shantanu Guha Ray, that uncovers all the aspects of the NSEL crisis, including all those SAFE & RICH men who actually orchestrated it.

With discrepancies worth Rs 5600 crore, it not only reduced NSEL into a defunct body but also unduly brought its parent company, FTIL, to bear for flawed corporate governance. Ever since multiple government agencies appointed to investigate and catch wrongdoers have either fallen off-track or been misled by vested interests.

The most unsettling of verdicts has been the proposed merger between FTIL and NSEL that forces 63,000 unassuming FTIL shareholders to cover for irregularities accrued at NSEL.

There has been no explanation whatsoever on this unjust step, which has been issued in “interest of public”. This leaves us with no other explanation but assuming that the Government has been blindfolded, and their faulty system which is making one pay for deeds of others, is on a vacation. Amid setting a baffling example across the globe on handling corporate cases, the Government is also turning a blind eye towards the 63k shareholders of FTIL, Jignesh Shah.

Ideally, the recourse here should center on recovering dues from real defaulters – the brokers– who are charged with conflicting investor claims and client complaints, rather than passing a verdict of a merger.

Do we expect the Government to wake up anytime soon?

I hope the book does the needful.

the target book reviews

It seems the NSEL-FTIL merger is actually being ‘forced’ upon….Why?

I have been currently working on a research paper on Indian corporate governance and have to do quite a bit of reading and study on interesting and exceptional instances and cases that may have occurred in the past. I recently started reading this book, which a friend suggested would help me in my project.

This book, which I request all of you to read, brings to light how a true ‘Made in India’ story was destroyed by our very own politicians and bureaucrats. Written by Shantanu Guha Ray, the book is called The Target Book and reveals how the political-bureaucratic nexus influenced or rather dictated market regulators to slap unreasonable orders on an Indian entrepreneur, who was only taking efforts towards making India a global financial giant.

One such order was a merger of two of his companies – NSEL & FTIL.

The proposal made by the Ministry of Corporate Affairs to merge FTIL with NSEL has caused disruption in the financial circles. The reasons are not far to look for- it is a classic example of executive overreach with all sorts of the legislation’s being floated left, right, and center.

However, the proposal is against MCA’s own circular that was set out in April 2011 containing guidelines for the amalgamation of two government companies. For a merger to materialize, it laid out the minimum requirement of obtaining consent from 100% shareholders and 90% creditors. In the case at hand, no such opportunity was provided to the stakeholders of FTIL.

I hope the book reaches the right tables of Power and Justice Prevails.

For more information check The Target Book Reviews.

the target book reviews

Who spoked the indigenous ventures of Jignesh Shah

All the exchanges and ecosystem ventures developed by FTIL group are India centric with all operations conducted by Indians in India with the benefits flowing to India.

For the first time in India, MCX provided an opportunity to Indian corporate houses to hedge their commodity price risks on an Indian bourse which is not only cost effective but also reduced the dependency on LME and NYMEX. MCX also provided an opportunity for SMEs to hedge, which otherwise did not have any other option for mitigating their commodity price risks.

MCX-SX proved to be a boon for the large exporters/importers to hedge their currency price fluctuation risks in a cost effective manner against the only earlier available option through a bank. The marginal exporters/importers who did not have access to banks, could easily participate on MCX-SX to hedge their currency risks.

Thus, these exchanges were a major force in making the Indian economy stronger and reducing India’s dependency on global markets. However, there are a very few who have appreciated Jignesh Shah for taking such daring steps. And, reading about the NSE Group’s attempts to bring him down time and again in Shantanu Guha Ray’sThe Target Book’ shows how low entities can stoop to retain their monopoly.

For more information check The Target Book Reviews.

the target book reviews

The Target unearths the conspiracy of NSEL chakravyuya

If FTIL’s Jignesh Shah had done in 2014 what he did well, a few years before that, India would have lapped him up as the brightest hero of true make in India. This is what investigative journalist Shantanu Guha Ray says in his latest book, The Target Book.

But with the state conspiracy against him, Guha writes, Shah’s efforts at tech innovation and entrepreneurship were brought to cipher. Competitors jealous of his growth story; slowly but readily, maligned and painted him black and ensured he was sent to jail; to spend 108 days with petty thieves, smugglers, and murderers.

Guha’s investigation reveals that the plotters in Delhi and Mumbai, who worked hand in glove with each other, wanted to project a vilified and deglamourised version of Shah to the world at large. Very few know what prompted the backroom drama to ensure this belly flop. How many in India know who engineered the systematic decimation of some of India’s finest exchanges, and pushed a visionary out of a canvas he had beautifully painted and nurtured?

Guha compares this to the fate of Abhimanyu, the son of Arjuna, who entered the Chakravyuha, a deathly arena surrounded by warriors adopting fair means or foul (mostly foul) in the war. The book is more fascinating than you can imagine. Go, get it.

the target book reviews

How One Exchange Fostered the Entire Exchange Ecosystem

I have been a market person and try following everything that’s available on this front; be it online or print. For those like me who are interested in stock markets, need no introduction for the man who digitized markets – Jignesh Shah.

Recently, I came across this book by Shantanu Guha Ray, titled, The Target Book, which talks about the ventures and creations that Jignesh Shah envisioned. He brought an evolutionary development in the Stock Exchange Market through his ventures, Multi Commodity Exchange and Financial Technologies (India) Ltd.

With a grand start of trading shares, MCX –SX held a benchmark index by the name SX – 40 which was an equivalent to BSE Sensex and NSE Nifty. The big shots from every industry like ACC, Ambuja Cements, BhartiAirtel, Cipla, Maruti Suzuki, NTPC etc were all major constituents of SX – 40.

The thriving impact of the company was observed when MCX – SX made profits of around 11.5 crores during the first year and went ahead with the dividend declaration of 10 per cent.

It feels proud to come across such facts that how a person from a middle-class family could stand out of the crowd to go ahead and build such solutions.

For more information check The Target Book Reviews.

the target book reviews

The Ploy of Vested Interests in the NSEL Crisis

Conspiracies by vested interests in the government have always been roadblocks in the development of the country. One such ploy hatched by vested interests was bringing down the FTIL group. ShantanuGuha Ray tries to get deep into the matter in his book ‘The Target Book’. The book is definitely worth a read.

Confidential documents accessed through an RTI indicate that the crisis was a conspiracy carefully crafted by some bureaucrats and market competitors. The documents also depict undue interest of KP Krishnan, the then Joint Secretary in the Ministry of Finance, in the National Commodity & Derivatives Exchange Limited (NCDEX), who went out of his way to create a scenario that would implicate FTIL.

In July 2012, the MCX got to know about Krishnan’s letter favoring NCDEX following which it moved the Central Vigilance Commission against him. Krishnan was subsequently shunted to a side-posting in September 2012, which further fuelled his grudge against the MCX and its promoting company FTIL and its promoter Jignesh Shah. Ten months after his posting, Krishnan returned to the Ministry of Finance in July 2013. On the very day of his joining, the Department of Consumer Affairs ordered the NSEL to stop issuing fresh contracts, which brought all the trading to a sudden halt. This was done despite the NSEL clarified its position on the contracts and explaining the MCA that any abrupt halt would lead to a crisis and chaos on the exchange.

Krishnan and his associates started pursuing the NSEL crisis with a vengeance. The Ministry of Finance took over the control of the FMC from the MCA. In October 2013, the FMC lodged an FIR against Jignesh Shah in the Economic Offence Wing (EOW). The FMC passed an order in December 2013 declaring that Shah and 63 moons are “Not Fit and Proper” to run any exchange, forcing their abrupt exit from exchanges in India and abroad.

Reference –ShantanuGuhaRay:(2016): The Target’: New Delhi: Publisher: AuthorsUpfront

For more information check The Target Book Reviews.

the target book reviews

The Target reveals why the merger with NSEL and FTIL is unfit

I remember reading about the NSELFTIL merger a few months back. This order passed by the Ministry of Corporate Affairs had stirred up corporate circles of India.

Recently, while reading a book, I was reminded again as to why this order issued by the executive ordering the merger between two private sector entities- NSEL and FTIL, forcefully, is an unprecedented and unwarranted recourse to the NSEL case.

Author ShantanuGuha Ray, in his latest book – The Target Book, points out how this forced merger order is a whip used by the unholy nexus between politics and bureaucracy to demean a national vision that dreamt by our very own – Jignesh Shah.

The book elaborates on how a middle-class man, made it big in the financial market infrastructure of this country. On reading the book, you understand that the areas of concern sin the forced merger are multiple – right from legislative and fiscal purview—to public interest. The claim by MCA that the move aims to alleviate the 13,000 trading clients of NSEL is based on untenable grounds.

What is even more baffling is that at a time when we are projecting ‘Make in India’, how would we rationalize such executive high-handedness. Would it not affect investor sentiments thereby hurting the nation’s interests?

A little while back, it should be noted, investigators found fresh evidence against NSEL brokers suggesting routing of black money. Also, previous complaints against brokers were also recorded on account of mis-selling, client code- modification, and misquoting of PAN. Interestingly, these findings also seem to vindicate Jignesh Shah’s stand on the case.

On a very candid note, it is difficult to grasp the hurry and rationality behind the merger when we should clearly be chasing the actual defaulters. Why make shareholders of FTIL pay for the sins of someone else?

For more information check The Target Book Reviews.

the target book reviews

WOW!…Feels good to read about this Revolution in the World of Exchanges

I have been a market person and try following everything that’s available on this front; be it online or print. For those like me who are interested in stock markets, need no introduction for the man who digitized markets – Jignesh Shah.

Recently, I came across this book by Shantanu Guha Ray, titled, The Target Book, which talks about the ventures and creations that Jignesh Shah envisioned. He brought an evolutionary development in the Stock Exchange Market through his ventures, Multi Commodity Exchange and Financial Technologies (India) Ltd.And it feels proud to share a few facts on this with you.

MCX-SX was in direct competition with the NSE, India’s biggest stock exchange by volumes and turnover, and the BSE, which is India’s oldest course.

To take on the two, MCX-SX offered a 50 per cent discount on transaction charges to new members, attracting many proprietary derivative traders. Of the 700 membership applications received by MCX-SX, 405 applications have been already registered with market regulator SEBI.

It feels proud to come across such facts that how a person from a middle-class family could stand out of the crowd to go ahead and build such solutions.

For more information check The Target Book Reviews.