Hounded and even arrested by EOW officers, later no money trail was found against Jignesh Shah.

2.  National Spot Exchange Limited (NSEL) crisis
broke in July 2013
 When the crisis broke all the trades were halted
by Forward Markets Commission (FMC)
 FMC as regulator of forward markets had no
jurisdiction over a spot exchange
 An exchange is supposed to be regulated by the
Ministry of Consumer Affairs

3.  FMC’s order to close the market immediately was
calamitous
 It created panic leading to a settlement failure of
5,600 crore
 Livid brokers wanted to know that if FMC was not
clear on the status of the exemption & on what
basis did it issue the show cause notice to NSEL

4.  Also why didn’t FMC ask the market to be
closed in May 2012 when the crisis was first
reported
 In 2012, the total volumes of trading on NSEL
hovered around 2,000 crore
 However, the FMC did not respond

5.  It was clear to many that the NSEL crisis had
happened purportedly
 The stocks that were sold were absent & a
payment failure was obvious
 Brokers who enticed their clients to trade
later went on record having inspected the
warehouses & confirming adequacy of stocks

6.  NSEL also instituted an internal enquiry &
charge-sheeted errant officials
 Shortly thereafter MD of NSEL Anjani Sinha was
suspended
 The government machinery swung into action
 Implicated Jignesh Shah & all other directors on
the board of NSEL

7.  On paper & legally it was clear that Jignesh Shah
did not directly owe even a rupee of the 5,600
crore
 It were the brokers who mis-sold the product on
NSEL platform
 Jignesh Shah was hounded & even arrested by
Economic Offence Wing (EOW)
 Later, EOW of Mumbai Police told the Bombay
High Court that it was not able to find any
money trail against Jignesh Shah