FTIL’s Contribution to India’s Financial Markets

Financial Technologies (India) Limited (FTIL) is regarded as “Marvel of modern financial markets” for a reason. FTIL brought inclusive and equitable growth in India through technology.

Before the inception of FTIL, the way stock and commodity markets worked was quite laidback. Jignesh Shah, the Founder of Financial Technologies, knew India needed technological advancements in the sector.

The journey began with the launch of software solutions, such as ODIN. From the early stages, FTIL’s list of clients included bourses, such as the National Stock Exchange (NSE).

Today, under the supervision of Jignesh Shah, FTIL runs a successful renowned technology business. The company is determined in shaping the future through technology and innovation in the rising ‘Digital India’ space.

The Financial Technologies Group never received any kind of subsidy or tax relaxation from the Indian government. On the other hand, the group generated substantial revenue for the government, amounting to Rs 4,000 crore.

The exchange markets of Singapore, Dubai, Bahrain and Africa have sought help from FTIL in technological development. Jignesh Shah’s broad vision and FTIL’s international operations put India on the world map of global finance. For new-born markets, strategies of this company have carved a path to great success.

The Financial Technologies Group’s rise is a true ‘Made in India’ story. Every enterprise that has been promoted and launched by the Group, has been the Number 1 in India and Number 2 in the world. The country should be proud of such exceptionally remarkable feats achieved by a home-grown company.

 

MCX plays a key role in the economic growth of India

The brainchild of the inspirational thought leader Jignesh Shah, Multi Commodity Exchange (MCX) stands tall amongst the world’s largest commodity futures exchanges.

Jignesh shah, who is also the Founder of Financial Technologies (India) Limited (FTIL), launched MCX in 2003 with an objective of bringing economic development and stimulating social stability in India.

The unparalleled success of MCX enabled the FTIL Group to establish a rock-solid universe of exchanges and ecosystem institutions. It facilitated the Financial Technologies Group tocreate a global exchange industry that constitutes a number of profitable ventures, such as the Indian Energy Exchange (IEX), the Dubai Gold & Commodities Exchange (DGCX), the Bahrain Financial Exchange (BFX), Bourse Africa, and Singapore Mercantile Exchange (SMX).

 

MCX designed a five-tier approach that includes a ‘mission’─ of India, by India, in India, to India, and for India.

 

Mission of India

Multi-asset futures trading issignificant for India’s economic development. Commodity exchanges help in accurate pricing of bullion, metals, energy and agricultural products. Also, it enables producers and consumers to mitigate risks.

 

Mission by India

The firm stature of the post-independence commodity futures market in India is a result of the skills, talent andfar-sighted approach of Indian investors, traders, brokers, intermediaries and bankers.

 

Mission in India

The development and benefits of Indian commodity exchanges stays within the borders of the country. It has helped tremendously in managing trading activities, checking price fluctuations and generating employment opportunities for many. Also, it enables the government to support its rural development programmes through the revenue generated from the taxes paid by these exchanges.

 

Mission to India

Commodity exchanges help inprice discovery and risk management through effectiveproduction and consumption planning. As a result, stakeholders, traders, entrepreneurs, logistic support providers, warehouse operators, collateral management companies, and individuals are benefitted to a great extent.

 

Mission for India

Indian commodity markets differ from capital markets. Commodity markets in India are driven by the farmers, traders, consumers and investors residing within the nation. Foreign

Institutional investors or companies have no role to play in the Indian commodity markets.

Jignesh Shah –The ‘Exchange Man of India’

Jignesh Shah, the founder of Financial Technologies (India) Limited (FTIL), is a perfect epitome of unwavering fortitude, indomitable will, and novel vision.Also known as the father of finance and trading digitisation in India, Jignesh Shah’s success story is phenomenal in its truest sense.

The journey commenced from the role of Assistant Manager at the Bombay Stock Exchange (BSE). In-depth knowledge on trading system automation and familiarity with the functioning of world-class exchanges aided Jignesh Shah in starting up his own venture. This revolutionary project was FTIL.

With the Financial Technologies Group, Jignesh Shah radicalised the global financial markets exponentially. He created ground-breaking technology solutions to support the formation and operation of modern IP-centric financial exchanges.He was rightly called the ‘Innovator of Modern Financial Markets’ for transforming the way commodities, stocks, currencies, and bond were traded globally.

Jignesh Shah also registered his path-breaking contribution to the Indian economy with a pioneering venture known as the Multi Commodity Exchange (MCX). The Futures Industry Association (FIA) recognises MCX to be one of the largest commodity futures exchange in the world.It was followed with a number of other profitable undertakings, such as the Dubai Gold & Commodities Exchange (DGCX), the Indian Energy Exchange (IEX), the Bahrain Financial Exchange (BFX), Singapore Mercantile Exchange (SMX), Bourse Africa, and so on.

The active involvement of Jignesh Shah in generating more than 1 million job opportunities in India cannot be overlooked. He also played a key role in promoting Corporate Social Responsibility (CSR) activities. With establishments, such as the Gramin Suvidha Kendra, he aimed at empowering the Indian farmers. He undertook multiple initiatives to elevate the living standard and income of people belonging to the rural areas of the country.

The unparalleled achievements of Jignesh Shah as the ‘E&Y Entrepreneur of the Year 2006’ and the ‘US-India Businessman of the Year 2005-06’are just a few recognitions to name in the Fintech sector of India.

Undoubtedly, Jignesh Shah is the living proof to the popular saying, “Innovation is the only way to win”.

 

 

MCX creates ripples in India’s financial sector

Multi Commodity Exchange of India (MCX) is the latest buzz in stock exchange markets. MCX is carrying on transactions in both precious and base metals, yet gold and silver contributes to its maximum trade values. The two metals reckoned 49 per cent of MCX’s turnover during 2007 that increased expeditiously to 63.7 per cent by 2011. A range of agricultural products, along with energy-related items, such as like oil also involves a significant involvement.
Founder of FTIL, Jignesh Shah, the man behind MCX’s success, clinched his biggest accomplishment when he got approval from regulatory body SEBI (Securities and Exchange Board of India) in September 2003. MCX is responsible for 98.5 per cent of silver and 97.1 per cent of gold trade of India that beat its nearest competitor National Commodity and Derivatives Exchange. The market share of MCX is steadily increasing, which can be observed with over- subscribed IPO held in February this year. The company raised Rs. 663 crore from such issue in return of 6.43 million shares.

The success mantra for the enterprise lies on its willingness to handhold members in the early years. MCX believes ‘Every minute counts’ and the company is capitalizing the reduced response time by exchange.
Once the additional margin money is remitted, an immediate call from the trader would enable him to take fresh trade positions in mere five minutes. The competitors of MCX sometimes takes longer than four hours to execute the same transaction.
MCX intends to involve more ‘jobbers’, the day traders who act as market makers to effectively utilize the available opportunities. Few industry experts say that the exchanges commodities at MCX like gold and silver not only have highest turnover but also implicates higher volumes. This, in turn, generates higher transaction fees in contrast with agricultural commodities.
MCX has changed the way India perceives growth in the financial sector. But for FTIL Founder, Jignesh Shah, this is just the beginning.

MCX-SX gains a major advantage in currency trades

With their new currency derivative segment MCX-SX has ruled over NSE which used to rule the stock markets. Jignesh Shah has a major hand in the success and prosperity of MCX-SX, and he was the one who supported this exchange platform with the help of his trading firm FTIL.

The turnover also has exceeded in the span of these last 18 months and the two players of this segment are MCX-SX and NSE but due to their new share growth in the capital market strategy MCX-SX has emerged victorious in the whole war. The percentage is 30% higher since the month of February.

Share market experts have claimed that MCX traders are going to be more active in the currency future from what they are now. Therefore, there are more chances for NSE to lose their traders to MCX-SX. Mr. Pramit, the CEO of Alpari India on this event said that the NSE derivative market is mostly comprised of foreign and domestic investors. DII, who is also one of their investors does not seem to participate, due to the lack of their currency exposure and FII due to some restrictions from RBI, which eventually will lower the shares of NSE in the market.

According to Mr. Vikram Murarka, speculative trading is the reason behind the increasing volume of the future currency market, which in turn demotivates the interested exporters and importers as they have to visit the bank for even minor dollar payment. It could later be the cause of these people to shift to MCX-SX for the trading purpose.

The Currency derivative head of Bonanza Portfolio, Jatin Damani says that about 25% currency futures volume would support corporate hedging, whereas about 78% supports arbitrage of commodity traders, retail trading, and proprietary trading.

The contracts in new currency pairs could also be a factor supporting this sudden shift from NSE to MCX-SX.

India 2.0 Rising:FTIL’s Jignesh Shah plays a major role in bringing the country on the IT world page

India’s own techno czar had a chance landing at the stock market. A Mechanical Engineer by profession, Jignesh Shah entered the Bombay Stock Exchange to look at its technical aspects. Soon, Shah, at the age of 26, raised money by mortgaging his house and setting up a company that aimed to service the financial market of the nation.
While setting up Financial Technologies (India) Limited, Jignesh Shah didn’t knowhis vision would expand in such a huge manner. He could not have imagined an upgraded version of the Indian financial market, which could be pitted against the world stock exchanges.
The ‘Technocrat’ says, “At 26, when I bet on whatever wealth my family had, including mortgaging our house, to raise $11000 capital for starting Financial Technologies, I hadn’t quite envisaged what it would become in future. There was no way I could have connected the dots looking forward.”
But Jignesh Shah decided to take the leap of faith. “I simply had to trust my gut, trust that the dots would somehow connect in future. It’s only when I look back that I can connect them. And this approach has helped me take where Financial Technologies is today.”
And the Founder of FTIL likes to believe that his company has indeed changed the face of Indian IT sector. He explains, “Post-1992 is the era I would like to refer as India 2.0, a time when reforms have made it possible to create global brands… that focus on IP-centric products or services. This is quite different from the India 1.0 period (prior to 1992) when cost or labor arbitrage drove business, especially in the IT sector.”

According to Jignesh Shah, the change in the IT sector has brought India onthe global map. “These brands have given muscle to the Indian economy, helping it register a consistent upward growth. While the country grew at roughly 6% during the 80s, the 90s has seen the growth rate shoot to 8%, and higher.”
No wonder, Shah is confident about being an integral part of the upgraded India, version 2.0!

Why is MCA Ignoring Recoveries?

The MCA issued the draft order of NSEL-FTIL merger on October 21, 2014. This was order was based on the recommendations made by the Forward Markets Commission (FMC). The constitutional validity of Section 396 of the Companies Act, 1956, was challenged and, in turn, the legality of the draft order was challenged by FTIL before the Bombay High Court.

If the merger is being forced on FTIL to ensure recovery for trading clients, then MCA needs to first consider that Rs.542 crore has already been paid off. Additionally, NSEL has made substantial recovery efforts by filing over 150 cases against defaulters, obtaining Rs.1,233crore of decrees, and Rs. 3,428.86 crore of injunctions.
Hope for Justice
Initiatives like encouraging the investments and FDI into our country and rolling back EPF have boosted immense faith among the entrepreneur fraternity into our government. However, instances like the Vodafone tax issue and ban on Maggi raised questions towards corporate governance in the nation. A favorable and thoughtful decision on the forced merger of NSEL-FTIL is a great opportunity for the government to boost and encourage entrepreneur spirit amongst young and dynamic business minds.

The ferocious clash between National Stock Exchange (NSE) and MCX-SX

With each passing day, the matter of the prevailing clash of National Stock Exchange (NSE) and MCX-SX is taking intriguing turns as the search for the final solution hasn’t halted till now. With a number of orders of buying and selling of shares, bonds, currency and their derivative contracts at stake, the stock market has turned into nothing less than a battlefield. The ferocious duel involves National Stock Exchange (NSE) and MCX-SX which stand in sharp contrast to each other and are diametrically opposite. MCX-SX is the newest stock exchange in India which is promoted by Financial Technologies group of Jignesh Shah, who is often acknowledged as the ‘Innovator of Modern Financial Markets’ and has delivered an unparalleled role in creating a successful Public Private Partnership (PPP) model  to build world-class financial institutions. With a virtual monopoly in stock derivatives and more than 50 percent of net profit margin, NSE enjoys formidable presence across the country.

The rivalry between National Stock Exchange and MCX-SX can be traced down to a number of years in the history.  However, an intense and heated pitch has been reached lately in last few weeks. NSE is portrayed as a monopolist who is not in favor of competition. On the other hand, Jignesh Shah’s group is portrayed as a disruptive fighter that must be restricted by NSE.

In order to debase and demean each other, both NSE and MCX-SX have unleashed an information war and keep the media, regulators and courts updated about each other. The clash between them has highlighted the way the stock market is run in the country. NSE is going the extra mile to dismiss the prevailing notions of it being a slumbering giant. On the other hand, MCX-SX is striving to assert its credibility and integrity.

MCX releases futuristic exchange software. Is Jignesh Shah readying India for another finance revolution?

Multi commodities Exchange of India (MCX) is the first exchange from the Jignesh Shah-founded, Financial Technologies Group. Financial Technologies (India) Ltd (FTIL) secured the license for MCX on the basis of its merit and pioneering ability to bring ace technological integration at the exchange. Founder Jignesh Shah, envisioned to setup state-of-the-art exchanges in India, and today, MCX with its ground-breaking success, is an Indian pride.

MCX found success due to the smooth integration of business operations with indigenously developed cost-effective technologies. It functions on latest versions of exchange technologies, viz., Distributed Order Matching Engine (DOME) and Clearing and Settlement Solution (CnS).

PK Singhal, Deputy Managing Director, MCX, said, “The new version has generated an encouraging response from the trader community. It has some excellent new features that will meet MCX’s ever-growing demand for value-added performance.”

He further added, “MCX is committed to provide best-in-class technological advancements by bringing solutions that address our customers’ top trading needs”.

These technologies have provided a global edge to the traders, while allowing multi-asset and multi-currency support. CnS provides real time risk management and mitigation, along with real time information distribution, crucial for all exchanges across the globe.

MCX, with its latest technology upgrades, offer low-cost real time information dissemination and innovative payment solutions. This has largely resulted in increased participation of the local talent and expertise, along with the boosting of local entrepreneurship climate.
Such pioneering role of Founder Jignesh Shah led FTIL in building MCX, and amazed the developing market.

FTIL made the “ODIN” trading system affordable to thousands of broking firms, small and big, individual and corporate, across the length and breadth of India.