I-T officials, who spoke on conditions of anonymity, claim Shah and his wife (Susan) got hefty royalty every year from the turnover of Nifty trading, which is 80% of the total turnover of NSE. This, they claim, is in violation of the standard industry norm, where a one-time payment is given to designers and researchers for any of the market indices.
What, claim I-T officials, is more unprecedented and stunning is that a percentage of trading on NSE and its earnings was said to have also been given as royalty to Shah and his wife, associated as professors at National Institute of Public Finance and Policy (NIPFP) and Indira Gandhi Institute of Developmental Research (IGIDR), respectively. I-T officials are also investigating whether Shah influenced FIIs and Participatory Notes (PN) activities on NSE. After all, he had profit sharing contracts with OPG Securities, Alpha Grep and Omnesys.
“What is damaging is that such a crucial piece of information was suppressed from the Red Herring prospectus of NSE’s on-hold IPO,” claim I-T officials, adding it was his proximity with a senior minister in the UPA and his obedient bureaucrats that helped Shah bag Rs 1 crore annual project for NIPFP for a decade.-from Sunday Guardian
3 replies on “Ajay Shah-The Man who makes money on every Nifty Contract”
Seems to be a bit of BJP propaganda in response to the accusations against Rupani. Co location of servers definitely gave some brokers an advantage. I personally find it hard to believe that Ravi Narain , Chitra or Suprabhat Lala made any money on it. They let their egos get to them and their main fault was hiding the advantage as soon as they got to know about it . Making money out of it , I don’t believe
I think Sucheta Dalal and her team are trying to find skeletons in the cupboard of NSE. Some have come out, others are waiting to come out. Very disgusting.
There is nothing imaginary about the Algo scam. It is real and has actually happened in India. Congratulations to the BJP government for trying to get to the bottom of the issue. The biggest fraud by the largest exchange needs to be probed and taken to the logical conclusion