Jignesh Shah led Financial Technologies India Limited(FTIL) had the distinction of perhaps the fastest growing financial infrastructure group with exchanges spread across multiple geographies. It stood the scrutiny of stringent regulation of major international financial centers in which the group established exchanges. In a short time of less than a decade, it made Indian exchanges stand among the top league of global exchanges. The innovations made by FTIL have become case studies for authorities planning similar development endeavors and strategies in several other emerging markets.
All this was wasted by certain people working for narrow interests, waiting for an accident to happen that they could turn into a major crisis and take this as an opportunity to launch a massive assault against Financial Technologies Group. An accident that happened at NSEL, arising from sudden stoppage of further issuance of certain commodity trading contracts by the regulatory authorities, that were made popular by brokers for their sophisticated and well informed traders and clients. In a similar situation anywhere in the world, regulatory institutions extend support including temporary liquidity provision as may be required to overcome the crisis. Whereas in the case of NSEL/FTIL, it was like vengeance unleashed by certain officials with rash actions and harsh punishments, when the investigations were still going on and certain key issues were under consideration of the courts.
Nobody benefited from this except only the egos of a couple of officials who were keen to destroy the group. But the claims of traders and clients remain unsettled. The recovery efforts are solely left with NSEL to deal with. Thousands of people who were depending on the group directly or indirectly lost jobs and incomes.
India really cannot afford officials who undermine national interest. It is time to reflect on what the country needs, who can deliver it and how certain people can make it vulnerable. And also how to protect Indian financial system from vested interests.