The High Court Committee, appointed by the Bombay High Court to settle claims of NSEL investors, has finally asked for the accounts of investors, traders/ brokers and records of NSEL to be audited. The Committee, comprising of solicitor member J.S. Solomon, chartered accountant Yogesh Thar and retired justice Daga, is believed to have based the decision on conflicting data submitted by NSEL and its operational machinery--the investors and brokers.
Set up on 24 April 2014, the Committee has overseen sales of defaulter assets and bail bonds to recover a sum to the tune of 30 crore. That has reignited the sentiment that selling off defaulters’ assets should drive recovery plans away from the FTIL-NSEL merger.
The merger already is being challenged on several grounds which include violation of limited liability principle, collateral damage (63k FTIL shareholders) and even fiscal prudence.
On the collateral damage front, it entails FTIL shareholders having to withstand liabilities worth Rs 5,600 crore. This kind of fiscal offloading is unprecedented, imprudent, flawed and must be questioned, as Jignesh Shah has been.
The panel’s interim order states that the allegations against brokers include giving false assurances, misrepresentation, trading without clients’ authority, modification of client code and selling NSEL contracts as investment vehicles.
The order also notes that the brokers and investors have no reservations in submitting data and information for verification of investor claims. It also echoes with the growing sentiment that the merger is not the solution; in fact it’s to the contrary.
Set up on 24 April 2014, the Committee has overseen sales of defaulter assets and bail bonds to recover a sum to the tune of 30 crore. That has reignited the sentiment that selling off defaulters’ assets should drive recovery plans away from the FTIL-NSEL merger.
The merger already is being challenged on several grounds which include violation of limited liability principle, collateral damage (63k FTIL shareholders) and even fiscal prudence.
On the collateral damage front, it entails FTIL shareholders having to withstand liabilities worth Rs 5,600 crore. This kind of fiscal offloading is unprecedented, imprudent, flawed and must be questioned, as Jignesh Shah has been.
The panel’s interim order states that the allegations against brokers include giving false assurances, misrepresentation, trading without clients’ authority, modification of client code and selling NSEL contracts as investment vehicles.
The order also notes that the brokers and investors have no reservations in submitting data and information for verification of investor claims. It also echoes with the growing sentiment that the merger is not the solution; in fact it’s to the contrary.