Unravel India Infoline Role in NSEL Crisis

SCHEDULE

• About India Infoline ( IIFL )• Overview on NSEL Crisis• Big Head Involved• Media Reports• EOW Arrest Three Brokers in NSEL• Closure

ABOUT INDIA INFOLINE ( IIFL )

• IIFL Holdings Limited (formerly known as India Infoline Limited) is the apex holding company of the entire IIFL Group.

• IIFL have a diversified business model that includes credit and finance, wealth management, financial product distribution, asset management, capital market advisory and investment banking.

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.

BIG HEAD INVOLVED

• They were around 148 broking members, representing more than 13,000 investors traded on NSEL platform.

• Some big brokers such as India Infoline Commodities, Anand Rathi, Geofin Comtrade and Motilal Oswal Commodities were also involved in NSEL crisis.

MEDIA REPORTS

• IICL became a member of NSEL in 2010 and has traded worth Rs 19,183.48 crore. 

• IICL gave its investors false assurances to expect returns between 19 to 21%.

• IICL also traded in clients’ names without permission.

EOW ARREST THREE BROKERS IN NSEL CRISIS

• The Economic Offences Wing (EOW) of the Mumbai Police Crime Branch arrested…

• Chintan Modi, director of  India Infoline Commodities (IIFL)

• Amit Rathi, director of Anand Rathi Commodities

• CP Krishnan, whole-time director of Geofin Comtrade on 3rd March, 2015

CLOSURE

• All three brokers have been charged for cheating, forgery, criminal conspiracy and criminal misappropriation under the Indian Penal Code. 

• EOW has now arrested a total of 24 suspects in connection with NSEL crisis.