MOTILAL OSWAL’S INVOLVEMENT IN THE NSEL

CRISIS

SCHEDULE

• About Motilal Oswal•Overview on NSEL Crisis• EOW Reports• Reports on Ketan Shah•Media Reports• Closure

ABOUT MOTILAL OSWAL• Motilal Oswal Securities Ltd. (MOSL) was founded in 1987 as a small sub-broking unit.

• Focus on customer-first attitude, ethical and transparent business practices, respect for professionalism, research-based value investing and implementation of cutting-edge technology.

• MOFSL today has a team of over 1600 employees with a net worth of Rs.1000 crores and a market capitalization of over Rs. 2,400 crores.

OVERVIEW ON NSEL CRISIS • Financial Technologies, in a joint venture with NAFED (a government agency engaged in food procurement/storage), set up the country’s first spot exchange, National Spot Exchange Ltd. (NSEL).

• The NSEL Crisis came to light more than a year ago when the present Defaulters of the Exchange failed to honor their pay-in obligations and Trading Members who traded on behalf of their clients could not receive their dues.

• After exhaustive investigations by multiple investigating agencies such as the EOW, CBI and ED, the 22 defaulters of the Exchange stand charged for perpetrating the crisis.

EOW REPORTS

• There are around five to six big brokers who played a vital role in NSEL crisis, along with small brokers.

• Among them, the two main brokers were Motilal Oswal Commodities Broker Pvt. Ltd. and PhillipCapital (India) Pvt. Ltd.

• According to them, Few brokers had lent money to the investors at 10-12% interest and the investors had invested the same in NSEL trading platform expecting 15-16% returns.

REPORTS ON KETAN SHAH

• As per reports, Ketan Shah one of the major investors in NSEL had been trading in the commodities market utilizing the broking services of  Phillip Capital (India) Pvt. Ltd. (earlier known as MF Global Sify Securities India Limited) and also Motilal Oswal Commodities Broker Pvt. Ltd.  

• Mr. Shah, reportedly, has an exposure of close to Rs.16 crores on NSEL.

MEDIA REPORTS• According to Media Reports, “An investor affected by the fraud at the National Spot Exchange Ltd (NSEL) has moved the Maharashtra Protection of Interests of Depositors (MPID) court requesting it to direct the Economic Offences Wing (EOW) of the Mumbai Police to file a fresh first information report (FIR) against Motilal Oswal Financial Services Ltd. and PhillipCapital (India) Pvt. Ltd. allegedly involved in the NSEL fraud.”

• Further stating, “Motilal Oswal and PhillipCapital were hand in hand with NSEL and FTIL (Financial Technologies (India) Ltd) and had a common intention to cheat and defraud me into investing my hard earned money for their personal enrichment”.

CLOSURE

• Motilal Oswal has total exposure of Rs. 253.92 crore as on date on crisis-ridden National Spot Exchange Ltd.

• Out of the total amount, NSEL owes Rs. 195.24 crore with respect to the positions taken by its clients through the broking platform offered by Motilal Oswal Group.

Thank you!!