Observations in Financial Tech trading pattern during the period Jun-Aug’13

Starting from June expiry the average open interest in the scrip was around 7 Lakh shares, which was rose to around 9 Lakh in July expiry, and in Aug expiry, it was average 10 Lakh till 31st July, but as soon as the news came in for default in NSEL it spurt substantially to 25 Lakh on Aug 1.

The open interest started  to building up since 18th July when the price was around Rs. 700 and it rose higher as the price moves lower. It touched its peak of 25 Lakh shares on 1st Aug when its price crashed from Rs. 539.85 to Rs. 191.65 or 64% (Rs. 348.00) in single day.

Next day, it fell further 23% to Rs. 147.50, but some short covered were seen in the open interest.

As the market progresses after two days of free fall, the rise and fall in open interest were seen substantially with huge volume and wild swings in price in both the segments viz. Cash and F&O.

The market cap of the company went down drastically by Rs.  3500 crs. in two days of trade.

It is obvious that there was insider trading, which may have resulted in short sellers profiting by about Rs 200 cr or so. I am not a stock analyst, but that is my analysis. I maybe wrong, and knowing how well JS knows the markets, I am sure he got people to place short-sell orders and then picked up the shares at the reduced price, so he actually holds the same number of shares, but has made a huge profit on the drop in price.

This is called insider trading, as he and others at FTIL MCX-SX etc knew of the NSEL problems and would have known that it will effect the share price. Else why would the Open Interest (Futures and Options) increase from July 15 onwards.

 The  bhavcopy extract from NSE is attached.


A Graph of the Open Interest and Market Price is also attached.



Large investors should see if we can get SEBI to do an enquiry into this. Its impossible that a Stock Market Shark like Jigesh Shah would not have played this game.

false afadavit submeet







How they are related

This is an example of their fraud

HBL - Investors Take NSEL Issue to Mumbai Police's Economic Offences Wing - 2013 09 19

SGS Audit Progress Report as on 17 Sept 2013

CBI starts probe into NSEL payment crisis | The Economic Times Video | ET Now

NAFED a Background Presentation

FIR for EOW of Police

To: All Members of NSEL

 Dear Fellow Victim,

We have uploaded the draft of Complaint together with Annexures 3 to 42 to be filed with Police, EOW Dept. on the Drop Box. The Drop Box link, login name and password are as under:


Login Name : nselinvforum@nselinvforum.com

Password    : abcd1234

I request you to kindly download the same and file the complaint with the Police, EOW Dept in your city. In case if you have any problem in downloading, kindly let us know. 

Please note the following:

a)    You need to fill in the blanks giving the data.

b)   The draft includes the broker as co-complainant. Hence you need to take consent of the broker and should file jointly. In case if you do not wish to do so, then you should amend the draft accordingly.

c)    You should inform us as soon as you file, so that we can keep a record that the filing is done.

Email from AZB Partners is given below for your guidance.

With kind regards,

Sharad Kumar Saraf



From: Aishwarya Nair [mailto:aishwarya.nair@azbpartners.com
Subject: RE: NSEL: Draft EOW Complaint

Dear All:

Please find enclosed a near final draft of the EOW Complaint proposed to be filed by the members and clients jointly. The same incorporates the comments of Mr. Pranav Badheka and Mr. Amit Desai, received so far. However, Mr. Amit Desai is still reviewing the final Complaint and may have further comments, which we will then incorporate in the final draft.

Also attached are the Annexures 3 to 16 to the Complaint. We will circulate the remaining Annexures by way of separate emails.

Please note that we have not yet been provided with Annexure 1, which has the consolidated details of all Complainants. Request you to please make the same available latest by 7:30 a.m. tomorrow (September 17, 2013) or it would not be possible for us to complete the signatory details in the Complaint within time.


AZB Team

AZB & Partners


RBI report raises red flag on NSEL crisis

> RBI report raises red flag on NSEL crisis
> By Simran Gill, ET Now | 18 Sep, 2013, 01.22PM IST0 comments |Post a Comment
> READ MORE ON » regulatory gaps | RBI | NSEL | KC Chakrabarty | Jignesh Shah | insider trading | Enforcement Directorate
> The RBI working committee report on the on-going NSEL crisis has raised concerns on the potential systemic risks thrown up by the issue
> ET SPECIAL:Get latest Dollar price updates on your mobile
> The RBI working committee report on the on-going NSEL crisis has raised concerns on the potential systemic risks thrown up by the issue.
> According to top government sources, the report prepared under RBI deputy Governor,KC Chakrabarty highlights key risks and also questions whether the FT Group led byJignesh Shah is fit and proper to run such a business. Sources say the report also doesn’t rule out the possibility of insider trading and manipulation in the NSEL set-up.
> “A system in which the software is designed by the same entity that owns the exchanges and clearing house certainly poses vulnerabilities to its integrity,” says a top government official with direct knowledge of the issue. According to sources, the fact that there was no clear regulator for NSEL at the start up stage, left open regulatory gaps. “The regulatory gaps may have been taken advantage of by the promoters of NSEL, though there is no concrete proof of that as yet,” said a government source.
> A forensic audit on the FT group is not being ruled out either, though the modalities are yet to be determined. “The fact that there are so many regulatory gaps as well as overlaps requires a multi-level probe into the entire matter. The ED and IT departments have already started their investigations,” said the government official.
> However the RBI report has not found any immediate systemic impact rising from the issue. The RBI is also learnt to have asked banks to furnish all details of their exposure to FT Group and its subsidiaries. According to a top banker, the RBI is not worried about the banking system’s exposure to the group as it’s not significant.
> The government had set up two working groups to look in to possible violations by the FT Group, one headed by Enforcement Directorate head Rajan Katoch and the other by RBI deputy governor KC Chakrabarty. Both the committees had submitted their recommendations to the Department of Economic Affairs on September 16.

BS : NSEL Owes Rs 253 Crore to Motilal Oswal Group

Rajnikant Patel - The NSEL Effect - A Case for 'Indocom' - BS

Jignesh Shah Knew a Crisis Was Brewing?

Are there lessons in this talk on the Mahabharat for Investors.

More dirt on NSEl, Bloomberg

September 17: Grant Thornton, which will submit its forensic audit report on the NSEL fiasco to the FMC today, has found routine violations, ranging from payment defaults to funding brokers and inadequate stock details. Meanwhile, the FMC is questioning how NSEL’s stockpiles were insured when no agency has been able to trace the declared stocks. Bloomberg TV India gives you the latest updates as part of its ongoing coverage of the NSEL mess.

NSEL appoints Saji Cherian as new MD & CEO

The board of National Spot Exchange Limited (NSEL) appointed of Saji Cherian as the Managing Director and Chief Executive Officer of the company with effect from September 16, 2013, a press release issued by the company stated. ( Read More ) The post was lying vacant since Anjani Sinha, the former MD & CEO was sacked following a payment crisis at NSEL. Sinha, in recently-filed affidavit with a local magistrate, had taken the entire blame for the crisis in NSEL. NSEL is actively pursuing recovery of outstanding dues from the defaulting members with pay-in obligation, the release said Saji Cherian was previously heading Listing -Issuer Services at MCX Stock Exchange (MCX-SX). He had also worked with Bombay Stock Exchange (BSE) as General Manager and at Madras Stock Exchange and Cochin Stock Exchange as Executive Director.

Read more at: http://www.moneycontrol.com/news/business/nsel-appoints-saji-cherian-as-new-mdceo_951363.html?utm_source=ref_article