Back with a bang – Jignesh Shah
Jignesh Shah’s Financial Technologies India Limited (FTIL), now known as 63 moons technologies shares climbed to considerably higher prices today. The stock rose to a high of ₹ 82.55. The Bombay Stock Exchange (BSE) for which Shah worked earlier in his career holds a daily volume of 3.08 lakh shares. The company today witnessed a volume of almost 10 lakh - thrice the amount of the normal.
On the National Stock Exchange (NSE), however, the stock saw a high at ₹ 82.70. About 4.6 million shares have been noted on the NSE in this session so far in this season. After struggling for support post-Securities and Exchange Board of India (SEBI)’s order of impounding averted losses exceeding ₹ 125 crore, the stock touched a low of ₹
53.80 in August. The Board had alleged 13 people for insider trading in MCX and its previous supporter FTIL. The accused included family members of Jignesh Shah for possession of price sensitive information regarding the National Spot Exchange Limited (NSEL) case. It posted these allegations, that Shah broke his long kept silence and spoke to the media to present facts in the case. He stated that he stands tall without any allegations proven till date and this is part of a bigger conspiracy against him. The following is an excerpt from ‘The Target’ by Shantanu Guha Ray:
“He was, figuratively, hounded out of business by a host of hasty decisions taken by the previous UPA-2 government, headed by Dr. Manmohan Singh, an economist with avid interests in the country’s financial sector, including its stock and commodities markets. Why was then Shah, who had actually built strong, active and healthy commodity markets in the country, targeted, when no similar decisions were taken against those involved in 2G and coal scam? Shah took upon the stock exchange monopoly of the National Stock Exchange (NSE) in India, the origination point of Participatory Notes and black money, thereby challenging the most powerful nexus of politicians, bureaucrats, crony corporate captains and dubious brokers. In short, he was hitting at the very base of India’s biggest market of white-collar criminals and black money generation point.”
The second round of inquiries is underway against Jignesh Shah, his company Financial Technologies India Limited, important officials and his relatives. The investigations will be held by the Enforcement Directorate (ED) who contacted with the Securities and Exchange Board of India (SEBI) for the details regarding the case. The following was reported by a source: "At present, the ED have sought specific details from the market regulator i.e. SEBI. Once the examination of these details/data gets over, the agency would begin its probe and start issuing summons to all 13 individuals for recording their statements.”
The total cooperation shown by Jignesh Shah and his company is suggestive of his innocence in the case. The seamless allegations are deterrents to Shah’s exponential progress in the industry and have indirectly slowed down the country’s development in commodity markets. The company faring well in the markets means that Shah and the company are unwilling to give up to personal motives and keep contributing to the society!