PhillipCapital since its origin in 1975 has grown as an integrated Asian financial house with a global presence that offers a full range of quality and innovative services to retail, corporate and institutional customers. Phillip Capital (with headquarters in Singapore) operates in the financial hubs of 16 countries, with offices in Singapore, Malaysia, Cambodia, Indonesia, Thailand, Hong Kong, China, Japan, India, Sri Lanka, UAE, UK, France, Turkey, Australia and USA.
According to EOW, there were around five to six big brokers who played a vital role in NSEL crisis, along with small brokers. Among them, the two main brokers were PhillipCapital (India) Pvt. Ltd. and Motilal Oswal Commodities Broker Pvt. Ltd.
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.
As per media reports, ” A distressed investor hit by the Rs 5,600 crore-NSEL crisis has put in an application under Maharashtra Protection of Interest of Depositors Act (MPID Act) and filed a separate FIR against leading financial services firm PhillipCapital (India) Pvt. Ltd. and Motilal Oswal Commodities Broker Pvt. Ltd.”
According to sources, Ketan Shah one of the major investors in NSEL has an exposure of close to Rs.16 crores on NSEL. He had been trading in the commodities market utilizing the broking services of Phillip Capital (India) Pvt. Ltd. (earlier known as MF Global Sify Securities India Limited) and also Motilal Oswal Commodities Broker Pvt. Ltd.
According to sources involved in the legalities or recovery of NSEL it has recently come to be known that Phillip Capital, one of the brokers for Mr. Shah have submitted a recording to the authorities between a Dealer of the brokerage and Ketan Shah.
Mr. Shah is reported to have called Phillip Capital post 12 July 2013 and instructed the dealer to invest a very large sum on his behalf on NSEL. The recording points out that when the Dealer advised Mr. Shah from investing such a huge sum on the Exchange, Mr. Shah is said to have retorted back telling the Dealer that it was his money and he wished to further invest and didn’t need his advice.
Mr. Chirag Shah, VP, Commodities is said to have been present during the course of this conversation.
Ketan Shah also alleged that Kunal Dave of Philip Capital India had assured him that they had carried out their due-diligence regarding the existence of the commodities in the warehouses of NSEL. Apart from Philip Capital, Shah also claimed that in October 2012, Motilal Oswal’s brokerage firm had approached him for investing in NSEL.