Folks, my parents I had invested some money in the UTI scheme and were defrauded like several others. I remembered it now while reading The Target Book by investigative journalist ShantanuGuha Ray And I feel, I those who lost money on NSEL could have got justice had the goring-fence died the NSEL crisis like it did in UTI case. But their woes continue since our govt have almost ignored the traders who decamped with Rs 5600 crore of NSEL and is instead hounding FTIL, its parent co.
Guha Ray says that the NSEL crisis should be viewed in the light of some of the other disasters hitting the stock markets where the quick intervention of the government helped resolve the crisis.
He points out that in 2001-2, UTI, a hundred per cent government entity, failed and incurred huge market losses to the tune of Rs 6,000 crores. The crisis was not confined to UTI’s flagship, US-64 scheme; along with it, the crisis engulfed many financial institutions like IDBI, IFCI, LIC, and GIC. The UTI had faltered once before in 1992; therefore this was the second time the government bailed it out by injecting Rs 3,300 crores.Although UTI was a cent per cent government entity, the government did not honor its commitment of assured returns to its small unit holders.
Then why did the govt treat FTIL and NSEL differently and let the investors suffer?? Big question but you have some answers in this book. Go for it.