CBI looking into role of regulator in MCX IPO

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New Delhi | Updated: May 04, 2015 2:05 PM

CBI is looking into the role of regulator FMC which has given some exemptions to the MCX before bringing its IPO.

mcx sebi ipoMCX, promoted by Jignesh Shah who is facing number of probes, had planned an IPO in 2009-10 but it was postponed because of global financial meltdown. (Reuters)

CBI has initiated an inquiry into the clearance given by Forward Markets Commission to MCX to bring its Initial Public Offering in 2012 which was allegedly against certain regulations, according to sources.

The discreet inquiry could be turned into a regular case if the agency found prima facie evidence of any alleged irregularities.

The sources said CBI is looking into the role of regulator FMC which has given some exemptions to the MCX before bringing its IPO.

MCX, promoted by Jignesh Shah who is facing number of probes, had planned an IPO in 2009-10 but it was postponed because of global financial meltdown.

Meanwhile, FMC brought in new regulations from which MCX sought exemptions to float an IPO again.

The IPO became a gainer in 2012 despite poor market conditions.

The sources said the agency found these alleged irregularities while probing extension granted to MCX-SX stock exchange by SEBI.

CBI had closed the probe against the then Sebi chief C B Bhave and former member K M Abraham even as it charged some Sebi officials and executives from the stock exchange and FTIL, promoted by Shah, the sources said.

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