The National Spot Exchange Ltd payment crisis of Rs 5,600 crore came to light on July 31, 2013 when the exchange suspended trading. NSEL has established the full money trail to the last paisa of the defaulters. NSEL has been pursuing recovery as a lone fighter through various legal means such as petitions in courts and with investigative agencies, having obtained some decrees and injunction orders, while clients and brokers have not participated or pursued recovery from defaulters. All agencies have found the full money trail, so the entire truth will eventually be revealed, including some clients having directly taken money from defaulters, with prior relationships existing between defaulters, brokers and clients.

1. NSEL : FICTION UNCOVERED

2.  The National Spot Exchange Ltd alleged payment crisis Rs 5,600
came to light on July 31, 2013, when the exchange suspended
trading in all its contracts
 It is already known that money trail to the last paisa is established
with the NSEL defaulters
 NSEL crisis
Overview on NSEL CRISIS

3. This is a fact that only NSEL is pursing recovery and neither brokers
nor clients nor doing anything for recovery of defaulters
NSEL succeeded is selling assets wherever it was legally possible as
almost all cases of recovery are at different levels of progress at
different legal forms, like MPID, Bombay High Court, ED, HCC etc
If the clients and brokers feel some assets can be sold then why
they are not moving petitions or participating in these cases for sales
of assets when they are physically present along with their lawyers in
all the forums
NSEL a lone fighter for recovery.
Reality

4.  All investigative agencies have full money trail and therefore
all truth would eventually be brought out
 There have been instances where client have taken money
from defaulters directly
 This direct relationship between the defaulters, brokers and
client have existed prior to the default also as the silence of
clients and brokers in pursuing the defaulters is very surprising
and not normal
Money trail found to the last paisa
to borrowers

5.  An exchange trading clients involves brokers acting as an agent of
client who are the principal and the transaction take place between
the consenting clients and the brokers which are counter party to a
trade
 The exchange technology is used for matching a trade but the
parameters of a trade which include commodity, quantity, price is
divided by the principal client and communication to the exchange
through their brokers who are agents
 The exchange has no control on any of these parameters therefore to
say that the exchange guaranteed the returns would mean that the
exchange forced the clients and the brokers to put in the parameters
which is incorrect as all these parameters are decided by the trading
counter parties
Investors who lost money were
‘trading members’?

6. • It is clear that the board & shareholders of NSEL and FTIL are
being victimized by various motivated and conflicted interest
• The client are complaining that NSEL & FTIL knew about the
missing commodities where the fact is more than 50 brokers visited
warehouses and never complained about the missing stocks
• This facility of inspecting stocks or taking delivery was available to
all trading client and brokers but some exercise the right to visit and
no more exercise the delivery
Is the liability to settle trades on
NSEL?

7.  Obtaining decree and injunction order from the court is success
which NSEL has achieved single handedly despite no help from
clients or brokers
 As regards liquidation, this is a legal process which is dependent
on various legal procedures and challenges inherit in the judicial
system and NSEL will exercise all diligence for liquidation and
disbursement
 All have been seeking participation from the clients and brokers
from joining us in recovery and legal fight defaulters but one is
forthcoming
NSEL acquired decrees & injunction

8.  It is true FMC met NSEL defaulters and other brokers jointly only once
immediately after closure of NSEL, but did not consider it necessary to
have another round of meeting after the first when the defaulting
members started defaulting in the payment commitment
 This is surprising that declaration of defaulter was considered more
necessary by FMC than the actual recovery of money
 FMC did not exert any pressure on defaulters for recovery of the money
directly or indirectly through investigative agencies but spent all time in
acting against NSEL and its directors, promoters and shareholders
FMC intents suspicious in NSEL
Recovery