National Spot Exchange determined to resolve crisis by recovering money from defaulters
The media should deliver unbiased news to the public. But then again, churning out malicious pieces by twisting the facts helps them get more attention. Consider the case of NSEL or the National Spot Exchange Ltd, which is promoted by FTIL. Financial Technologies (India) Limited (FTIL) did not commit any breach of governance and it never abused the market.
The company is a well-run with about 60, 000 public shareholders. FTIL’s efficient technology and cost-effective solutions have helped financial markets in India to expand. It has never received any complaints from its customers and clients.
One of the major goals of FTIL is to make India the leader of global commodity exchange market. And National Spot Exchange Ltd was set up with this aim. The spot exchange grew enormously on the global platform and outperformed its competitors.
Neither FTIL nor NSEL; National Spot Exchange Ltd received any sort of financial support from the Central or state governments of India. But it did contribute to revenue generation in the form of service tax, corporate income tax, stamp duty and transaction tax.
Notwithstanding the deep crisis the exchange is facing, NSEL is fully committed to cooperate with the authorities. It is ready to take necessary steps to recover its clients’ money from the defaulters. But NSEL doesn’t have executive or judicial powers. Instead of getting support and assistance from the government, the exchange is dealing with threats. FTIL is being pressurized to merge with NSEL, which hardly resolves the real problem.
The important question that arises now, is it fair to dismantle the management of FTIL and its subsidiaries? Is it not unjust to impose harsh actions on FTIL, when the payment defaulters roam around free?