FTIL : Strange Case of Not Fit & Proper

the target book reviews

The story of Jignesh Shah with the twists and turns is nothing short of a Bollywood potboiler. Jignesh Shah’s journey is an inspiration in itself. For all his glory, Jignesh Shah has ensured that his exchange ventures were run with proper infrastructure and governance. In fact, Jignesh Shah has the distinction of establishing 10 successful and state-of-the-art exchange ventures.

Now, what is surprising is that how can such a group, that revolutionized the Indian Financial Markets, be declared ‘Not Fit & Proper’ to run any Exchange business? After the NSEL crisis, FTIL was forced to exit from all its exchange ventures as the Ministry of Corporate Affairs (MCA) did not consider it ‘Fit and Proper’ to hold stakes or shares in any of the exchange businesses. The irony here is that all the exchange ventures which had to be sold by FTIL, have been bought by some of the renowned ‘Fit & Proper’ institutions in the world.

Then why did FMC recommend such drastic action against the FTIL group? While on one hand, FMC said it did not have the regulatory powers to deal with the crisis but on the other hand, then why did it recommend a merger? So was it vested interests that were driving the decisions of FMC? This is definitely something to ponder over.

Shantanu Guha Ray in his new book ‘The Target‘ tries to unearth the answers to these questions.

Reference: Shantanu Guha Ray: (2016): ‘The Target Book’: New Delhi: Publisher: AuthorsUpFront

For more information check The Target Book Reviews.

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