NSEL was an organized Ponzi scheme...hard to believe that an exchange can end up like this

Originally posted by Crimsonarcher But what I was talking about is the liability of FT to NSEL? Can creditors come for the assets of FT or their last recourse is only to the assets of NSEL?

Why to touch a company with the same promoter. If they have done great at NSEL then what is the guarantee that it won't be repeated.

FT 160 put trades at 20% premium. FT has goodset of products. NSEL profit will vanish but still nice highly profitable business stays with sticky customers. And investment in exchanges which is highly valuable.

Even if investors ask court to recover money from FT(NSEL in my understanding is limited liability) it will be long battle. If you write put option and stock goes down 15% in a month, you still make 5%. Lets assume it goes 30% down, next month you make another 20% by writing options.

In emergency, they can sell MCX and so many players are looking to buy MCX.

So it is highly volatile and not possible to get moves and it opens in gap on news. But at the same time, it doesn't and won't move one way like Gitanjali. And it certainly won't go to zero.

I had sold puts in FT for 3 months and then it got out of FO and had purchased MCX. MCX was sold when doubled as there were other opportunities too.

In MCX at that price there was only uncertainly. No risk. FT has more uncertainty and some risk.