It is a known fact that Jignesh Shah owned 99.9% of NSEL. But of all the exchanges that he created, only NSEL incurred a crisis. At the outset, it looks fishy as none of the other exchanges which he has been heading saw any such problems. In fact, NSEL ran successfully for five years since its inception in 2008. But, if there was a market watchdog, was it sleeping for five years. I am an ardent investor in the commodities market and I was one of the happiest when MCX came about in 2003. Jignesh Shah rose to stardom, and his direct competitor was the monopolistic NSE.
The NSEL which ran successfully for five years was under the supervision of FMC from 2011. So in the two years that FMC was the designated authority to lead the exchanges and protecting the investor interests, it was definitely sleeping. If it takes so much time to actually connect the dots or even notice a violation, two years after it was designated by the Govt to do so, then it is an issue as it clearly shows the FMC was ineffective as an authorised watchdog. In addition, if it was so incompetent, why did the Government approve of its recommendations of NSEL-FTIL merger, when they themselves merged FMC with SEBI. It does sound strange that it was a premeditated move to bring down Jignesh Shah. Have the vested interests succeeded in killing his spirit of innovation. Guess, only time will tell!