The government and the Forward Markets Commission (FMC) is close to taking a final call on whether promoters of Financial Technologies (India) (FTIL) are considered ?fit & proper? to continue operating commodity and exchanges and any adverse remark would trigger a chain reaction, with some of the overseas regulators also watching the decision closely.

According to persons familiar with the matter, if the Indian regulator decides on taking away the ?fit and proper? tag, then the FTIL Group will be questioned by regulators in countries where the group operates exchanges. Currently, FTIL manages exchanges in Singapore, Mauritius, Bahrain and Botswana.

?Most of the countries in which the group operates are part of IOSCO, which takes such alerts quite seriously. There is a high amount of co-ordination among member regulators with joint monitoring group and forum already in place,? said a person aware of the functioning of IOSCO.

In 2011, the Dubai Financial Services Authority (DFSA) revoked the licence of Arun Panchariya. It directed him to resign from the president?s post and also as a board member of Euram Bank Asia, after Sebi found him guilty of market manipulation using GDR issues and barred him for 10 years.

Barring the regulator of Botswana, the regulators of Singapore, Mauritius and Bahrain are all members of IOSCO. ?MAS is aware of the developments concerning Financial Technologies (India),? said a spokesperson of Monetary Authority of Singapore (MAS), in response to an email query. ?As a matter of policy, we do not comment on our confidential dealings with individual financial institutions,? he added.

Earlier this month, Dubai Gold and Commodity Exchange (DGCX) was forced to issue a clarification on its relationship with FTIL and its promoters.

?Due to unfolding events in India with regards to the FTIL, DGCX would like to confirm the status of its relationship with the company and its promoters. FTIL Group is a minority shareholder of DGCX and hold two of five nominated board seats,? said a spokesperson of DGCX, adding that ?no director of the exchange has any operational responsibility for the running of the company.?