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Jignesh Shah – The Rise and Fall of an Ambitious Entrepreneur
![Case Details](images/details.png)
![Case Introduction 1](images/intro1.png)
![Case Introduction 2](images/intro 2.png)
![Case Excerpts](images/excerpts.png)
Excerpts
MCX AND NSEL INCORPORATED
THE INFLUENTIAL SHAH
Shah exercised enormous influence on the government and was close to powerful political leaders. He was said to have roped in political and industrial bigwigs to clear the way for his establishing MCX. He was reportedly favored by topnotch industrialists and politicians during that time . His parent company, FTIL, had garnered money from top industrialists...
THE INITIAL FISSURES
The initial fissures started surfacing in 2009 when MCX was accused of taking undue advantage of weak legal foundations and a weak regulator. The legal framework of FMC, which was drafted in 1952, had suffered from obsolescence...
THE NSEL SCAM
Shah’s tentacles spread overseas too. He launched trading exchanges in six countries, which included a gold exchange in Dubai...
WHAT ACTUALLY TOOK PLACE
Investigations revealed that instead of facilitating T+2 transactions , which was NSEL’s entitled scope of trade, the spot exchange had initiated multiple contracts...
THE BLAME GAME
The blame game then began. Shah pretended to be unaware of the loopholes in NSEL and MCX. In a dramatic turn of events, Sinha made an out-of-turn confession stating he was responsible for all the objectionable affairs at the beleaguered exchange...
THE CRACKDOWN
On October 31, 2013, Shah was compelled to resign as non-executive vice-chairman of MCX after FMC issued a notice to him and to FTIL...
EXHIBITS
Exhibit I: List of Traded Commodities