National Spot Exchange Scam
NSEL (National Spot Exchange) Scam is also called NSEL fraud. It is systematic fraud perpetrated in the market on NSEL that is based in Mumbai, India.
This company was promoted by financial technologies India Ltd. It is estimated to be 5600 crore fraud that came out to light after the NSEL failed to pay its investors. After 31 July 2013 NSEL failed to pay its investors in commodity.
NSEL was accepted as a spot commodity exchange by FTIL and token 100 shares were given to NAFED. Mr. Paul Joseph signed this release later was known to have joined the FTIL group.
Effect of the fraud
- Effect of the NSEL fraud, the share prices of its promoter company FTIL crashed by 60 and 70% resulting in company's market cap.
- On 9 October Jignesh Shah and Joseph Massey had to resign from the board of MCX-SX stock Exchange.
- Through the Mumbai EOW was arrested to Jignesh Shah on 7th May 2014.
- On 20th July 2014 FTIL has sold 15% stake of MCX to Kotak.