NSEL promoter Jignesh Shah submits bona fides to FMC

Nov 12 2013, 22:15 IST
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FMC had earlier decided to order a special audit of MCX, the listed commodity futures bourse and cash cow of Jignesh Shah's empire. Reuters FMC had earlier decided to order a special audit of MCX, the listed commodity futures bourse and cash cow of Jignesh Shah's empire. Reuters
SummaryQuestions were raised against Jignesh Shah in connection with the Rs 5,600-crore payment crisis.

Jignesh Shah, promoter of the crisis-ridden National Spot Exchange Ltd (NSEL), today submitted bona fides before the Forward Markets Commission (FMC) in response to a showcause notice served by the regulator earlier.

Shah, who is also the promoter of the Multi Commodity Exchange of India (MCX), appeared before the FMC Chairman Ramesh Abhishek along with other board members here today.

The regulator had called this meeting to present Financial Technologies their case over retaining their "fit & proper" status.

Shah has already resigned from the MCX board last month following regulator's show cause notice to him.

Questions were raised against Shah in connection with the Rs 5,600-crore payment crisis that gripped NSEL.

"It was one of our bona fides which was to be submitted and our legal advisors have submitted our view. We will wait for the outcome," Shah said after the meeting.

"It was important that we submit our bona fides. All of us have resigned and I told very categorically that I want to see this exchange grow, from a distance. This I have communicated at the time of my resignation also," Shah added.

FMC had earlier decided to order a special audit of MCX, the listed commodity futures bourse and cash cow of Jignesh Shah's empire.

The audit will focus on a detailed examination of trades on MCX by related parties, particularly by the FT group entity Indian Bullion Markets Association (IBMA).

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