No question of govt taking over Jignesh Shah's NSEL, indicates P Chidambaram

Written by Press Trust of India | Washington | Updated: Oct 15 2013, 17:37pm hrs
Jignesh Shah nselNSEL, promoted by Jignesh Shah-led Financial Technologies, is facing a payment crisis of Rs 5,600 crore. PTI
Ruling out a takeover of Jignesh Shah's crisis-ridden NSEL, finance minister P Chidambaram has said that its parent group, Financial Technologies India Ltd (FTIL), and another related entity, MCX-SX, are under watch and persons responsible for the alleged irregularities will have to pay the price.

"There is no question of the government taking over NSEL. The government is concerned about the regulated entities one of them is MCX, a commodity exchange, the other is MCX-SX, and another is the promoter of the Multi Commodity Exchange of India Ltd (MCX)

Multi Commodity Exchange of India Ltd (MCX) and MCX-SX, which is Financial Technologies. All three are under watch", he said in a TV interview.

National Spot Exchange (NSEL), promoted by Jignesh Shah-led Financial Technologies, is facing a payment crisis of Rs 5,600 crore.

The minister, who is here to attend the IMF-World Bank meetings, said that NSEL has been operating under an exemption order and "if it has defrauded any of its investors or clients, (it) must pay a price."

Chidambaram further said the Economic Offences Wing (EOW) of the Maharashtra Police had registered a case and was probing the alleged irregularities.

"They made one arrest before I left. I didn't know about the second arrest. Those who have committed the acts of malfeasance or misfeasance will pay a price," he added.

As far as MCX-SX, a stock exchange promoted by Financial Technologies, is concerned, the minister said that Sebi had forced two of its directors to resign.

MCX-SX, Chidambaram said, "is now managed by a board which does not have suspected or tainted people."

With regards to MCX, the minister said, "the show-cause notice has been issued, the two week period is to expire and the FMC (Forward Markets Commission) will take action after it receives the reply to the show-cause notice".