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NSEL crisis: Financial Technologies’ Jignesh Shah says he is victim of ‘fraud’

Amid heavy police bandobast due to protesting investors,Jignesh Shah said his reputation's been hit.

Written by PTI | Chennai |
September 25, 2013 9:06:46 pm

Financial Technologies India (FTIL) Chairman and CEO Jignesh Shah today said he is a victim of management fraud at NSEL and sought support from shareholders and the government to tide over the crisis the group is going through.

Addressing the annual general meeting here today amid heavy police bandobast due to protesting investors,Jignesh Shah said his reputation has been hit and called on shareholders not to judge the performance of Financial Technologies by its subsidiary,the National Spot Exchange Ltd (NSEL).

NSEL crisis: Financial Technologies shares nosedive over 14% as auditor withdraws report

The NSEL is facing problems in settling Rs 5,600 crore due to 13,000 investors after shutting trading operations in July. It has already defaulted on six weekly payments.

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NSEL crisis: Jignesh Shah-led Financial Technologies AGM to be stormy,’scam’ bytes fly

“We are pained that because of NSEL,market has to suffer…Please understand that this company should not be judged by NSEL. That is my humble request. Please don’t take away credit of the institution what we have built,” Jignesh Shah said.

He said it would be “desirable” if he can get any support from the government and called on shareholders to “stand and commit ourselves to this painful episode.”


Jignesh Shah stated he would have to stand by small investors at NSEL to regain his reputation and will leave “no stone unturned” to get back to normalcy.

“The biggest loser is reputation,” Jignesh Shah told reporters. “I was enjoying market value and reputation at the highest value. You judge by yourself rather than me justifying it.”

Jignesh Shah said he is in talks with the investors forum to resolve the NSEL payment issue.


“We have to focus for a really long time,” Jignesh Shah said,when asked what deadline he has set to tide over this phase.

He told the shareholders he was the victim of “management fraud” at NSEL.

Ex-NSEL CEO Anjani Sinha,in an affidavit filed in a Mumbai court,had blamed the entire former NSEL senior management,including himself,for the payment crisis.

Stressing that Financial Technologies’ profit hasn’t been affected by the NSEL fiasco,Jignesh Shah said: “People say 50 per cent. But it was not,” adding the facts would become clear after the earnings report for fiscal 2012-13 is revised.

Jignesh Shah said Financial Technologies’ statutory auditor Deloitte,Haskins & Sells will recast the financial statement based on new inputs from NSEL. Deloitte raised doubts about Financial Technologies’ accounts and withdrew its report certifying them.


Some investors staged protests outside the AGM venue,wearing black badges and holding placards with slogans such as “Where is our money,Jigesh bhai,open your eyes. We want our money back,don’t take our hard-earned money.”

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First published on: 25-09-2013 at 09:06:46 pm

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