1. CONSEQUENCE OF FORCED NSEL-FTIL MERGER

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