FTIL, brokers fight to tell 'their side of the story'

MUMBAI: Amid allegations and counter-allegations flying thick and fast between brokers and FTIL, parent of NSEL, the two sides are circulating booklets stating "their side of the story."

A week or so after FTIL circulated a large booklet "The Truth About NSEL" in "public interest" and proposed a resolution to the government of the Rs 5,600-crore crisis by roping in brokers, the latter, not to be left behind, will, through a booklet — The Story of Vanishing Stocks — focus on the stock aspect, which they feel needs to be addressed by NSEL.

The booklet pins the responsibility for missing stocks, which is at the heart of the scam, on NSEL and alleges that its parent FTIL which had directors on the exchange's board, could not have been unaware of the goings-on that resulted in the fraud.

The booklet, drawing from commodity market regulator FMC’s not-fit-and-proper order of December 17, 2013 against NSEL and its directors, blames the exchange for a lack of due diligence in appointing reputed collateral managers, vetting the background of the 24 defaulters, allowing them to trade despite repeated defaults on pay-ins.

"It’s important that we don’t lose sight of the issue’s crux — missing stocks and who was responsible for maintaining their quantity and quality. We need a reply on this front," said Alok Churiwala, spokesperson for BSE Brokers Forum.