I remember reading about the NSEL–FTIL 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.