Financial Technologies: The rise and

fall (63 Moons technology limited and

NSEL scam)

The Name Change

Jignesh Shah - promoted Financial Technologies India Ltd

(FTIL) has changed its name to 63 Moons Technologies Ltd, the

company said in a stock exchange statement on
August
19,2015.
A letter addressed to the shareholders of the company said the
new name is based on the fact that Jupiter, the largest planet in
the solar system, has 63 moons.
Jupiter, the most powerful planet in the universe, stands for
knowledge, wisdom, foresight and, above all, growth and
prosperity,

NSEL SCAM
The NSEL scam or NSEL fraud is a systematic and

premeditated fraud perpetrated in the commodity market on the

National Spot Exchange that is based in Mumbai, India.
It is a classic case for the failure of governance in India.
The NSEL scam is estimated to be a Rs. 5600 crore (around

US$0.95 billion) fraud that came out to light after the National
Spot Exchange Ltd. failed to pay its investors in commodity pair
contracts after 31 July 2013.

 FTIL has been under the regulatory scanner of various authorities

such as the Forward Markets Commission, the Economic

Offences Wing of the Mumbai Police, the Enforcement
Directorate and the Ministry of corporate affairs for its alleged
role in the Rs.5,574 crore settlement fraud at National Spot
Exchange Ltd (NSEL). FTIL holds a 99.99% stake in NSEL.
The company will create a laboratory of global standards on the
lines of Bell Labs, Google Labs and Apple Labs to explore
innovative technology products in areas such as artificial
intelligence, speech recognition and behavioural science, among
others. The lab will be named JS Innovation Lab.

 One of those borrowers who borrowed around Rs. 1000 crores is

a company named NK Protein Ltd., and is owned by the son-inlaw of the former Chairman Shankarlal Guru of NSEL.
Surprisingly Anjani Sinha whom the promoters blamed as the

main culprit was kept with NSEL by Jignesh Shah for almost 12
13 weeks after the scam as a 'special office recovery' showing the
collusion between the two.

CBI and POLICE action

The EOW (Economic Offences Wing) of Mumbai police is

presently investigating this fraud and the Mumbai police has

conducted various raids.
An FIR has been filed against the directors and the FTIL along

with various other brokers involved.

Various Arrests Involved

On 9 October 2013, Amit Mukherjee, the Assistant Vice-

President (Business Development) of NSEL, was arrested by the

EOW
On 10 October 2013, the EOW of Mumbai Police arrested
Jai Bahukhandi, the former Assistant Vice-President of NSEL.
Former CEO and MD, Mr. Anjani Sinha, was the third arrest in
the case; he was arrested a week later on 17 October 2013.
The EOW also arrested Rajesh Mehta of Swastik Overseas
Ahmedabad who was one of the borrowers on 1 April 2014.

CONCLUSION
As an effect of the NSEL fraud, the share prices of its promoter

company FTIL crashed by 60-70% resulting in massive erosion

in the companys market cap.
The share prices of the sister company MCX (Multi Commodity
Exchange Ltd) also took a beating.
Subsequent to a High Court directive the FMC got a monitoring
and Auction committee(MAC) formed to dispose-liquidate assets
of NSEL and defaulting borrowers which had to be disbanded in
September 2014 as NSEL was bereft of resources and could not
recover anything substantial.