NSEL crisis: 40-page show cause notice sent to FTIL, Jignesh Shah, others

Oct 06 2013, 00:27 IST
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FMC found that all directors of NSEL, including Jignesh Shah (above), were present at the 2009 board meet. (Reuters) FMC found that all directors of NSEL, including Jignesh Shah (above), were present at the 2009 board meet. (Reuters)
SummaryAll parties have been given 2 weeks to respond, after which FMC will take a final call on the issue.

guarantee to borrowers in order for them to avail of funds from private banks.

Other instances cited by the FMC in the show cause notice include the fact hat the board of NSEL was asked to set up 10 oversight committees to oversee the functioning of the exchange, however 9 of these committees never saw light of day.

The FMC's final decision on the 'fit & proper' status of the FTIL group could also have a bearing on the group's stock exchange, MCX-SX. While the Securities & Exchange Board of India (SEBI) renewed the recognition to the exchange in September for a period of one year, it had indicated that any adverse ruling from another regulator could have a bearing on it's decision to allow the group to continue operating the stock exchange

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