The document criticizes the Forward Markets Commission (FMC) for its role as a mute spectator during the 2013 National Spot Exchange (NSEL) crisis. It alleges that despite NSEL sharing information with FMC for years, FMC wrongly advised the government to abruptly close NSEL. It also questions why FMC allowed NSEL to operate for so long if it was violating norms from the beginning. Furthermore, the document claims FMC overstepped its powers by recommending the merger of NSEL and FTIL and changing FTIL's board. It argues FMC failed to take actions like SEBI did in a similar 2008 crisis, and has passed pecuniary benefits to defaulters and brokers while remaining silent about broker involvement in money laund

1. FMC BEING MUTE
SPECTATOR IN NSEL
CRISIS

2. Alleged Role of FMC
• The commodity market was shocked by the outbreak of National
Spot Exchange (NSEL) crisis two years back
• On 6 Aug’13 Government gave wide ranging omnibus powers to
FMC to take punitive action against the NSEL defaulters
• Despite NSEL sharing all the information on its trades and contracts
since 2011, over 3 years before the crisis erupted with FMC and
clarifying on its queries

3. • Even then FMC wrongly informed Ministry of Consumer affairs that
NSEL had violated norms and advised its abrupt closure
• If NSEL was running illegal contracts from day one, why was NSEL
allowed to do so by FMC
• FMC is completely silent on brokers role even after large scale
clients filed complaints against leading broker entities for alleged
money laundering

4. FMC Conspiracy Exposed
• In 2014 FMC recommended merger of NSEL and FTIL and
subsequently changes FTIL board
• FMC is not been empowered to make such recommendations
under the Forward Contract Regulation Act for merging two
entities
• The Govt has never used Section 396 of the Companies Act to
merge two private companies
• And use the assets of one company to pay the liabilities of the
other

5. FMC Overlooked
• NSEL payment crisis could have been easily resolved if #FMC
followed SEBI’s example of the 2008 National Security
Depository Limited scam
• In which SEBI chased 108 brokers and recovered 25% of the
amount due to a total of 12 Lakh investors
• If FMC had chosen to chase 7 defaulters who owe 85% of the
total defaulting amount majority of the recovery could have
taken place

6. • The inaction of FMC clearly depicts that FMC has passed on
pecuniary benefits to defaulters, brokers and National spot
exchange just to sabotage FTIL group
• In NSEL crisis many leading brokers were involved in money
laundering, misrepresenting facts, mis-selling , forgery, and
cheating their clients
• Still why is FMC is completely silent on brokers role even after
large scale clients filed complaints against leading broker
entities for alleged money laundering.
•