NSEL crisis Jignesh Shah replies to FMC notice

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SummaryFTIL promoter tells Forward Markets Commission show-cause notice is premature.

National Spot Exchange Ltd (NSEL) promoter Jignesh Shah on Tuesday submitted bona fides before the Forward Markets Commission (FMC) in response to a showcause notice on the “fit and proper” status of Shah and others to continue as promoter of MCX.

“It was important that we submit our bonafide. You know that all of us have resigned and I told, categorically, that I want to see this exchange grow from a distance. This I have communicated at the time of my resignation also,” Shah said after meeting FMC chairman Ramesh Abhishek.

Though FMC and Jignesh Shah refused to reveal the content of the bona fide, sources said it is similar to what Shah had submitted to the FMC on October 31.

“In the bona fide, Financial Technologies board has pointed out that the showcause notice which the FMC had issued to them was too premature since the investigations are still on,” said a source.

FTIL has said the allegations related to NSEL are not even adjudicated and an order should not be passed based on the showcause notice on the “fit and proper” status. It is learnt they have also sought a cross examination of forensic audit of FTIL by Grant Thornton. The FTIL group also said the FCRA guidelines are without jurisdiction.

“One day, India will deliver world’s No 1 commodity exchange which we could build it up to No 2 in the world — one dream which remained unfulfilled. Secondly, development of SME exchange for India will also happen. These two dreams I would like to see from a distance,” Shah said.

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