If not for Vested Interests, The NSEL Crisis could have been Solved Easily

To understand the NSEL Crisis, one needs to take note of the following points:

·        NSEL had a valid and legal business model

·        There was no omission or commission on part of the NSEL Board

·        The crisis was solvable but was blown out of proportion by the action of the FMC, which focused on disciplinary action first, even prior to an investigation, and left out recovery and action against defaulters completely

·       FMC has been changing its stance in NSEL matter even before the crisis erupted. When on July 19, 2013, it replied to the Government that the 2007 exemption was a general exemption, then where did the question of illegality arise for suspending the trading of NSEL?

·        Due to a conspiracy, the NSEL crisis was treated differently than any other previous crisis in the financial sector including the manner in which the FMC treated other spot exchanges and NSEL

·        When NSEL suspended its trading, there were 46,000 trading clients with outstanding, out of which 33,000 trading clients in e-Series got their full payment and out of the remaining 13,000 trading clients more than 50% of them, around 7,000 trading clients, were paid more than 50% of their outstanding from the loan provided by 63 moons

·        Comprehensive investigation by the EOW has revealed that the entire outstanding dues of the trading clients are with the 22 defaulters

·        Time and again, NSEL and its parent have been singularly targeted while the real culprits – the defaulters roam free. 

For more information check 63 Moons.