Mumbai police probes NSEL's Jignesh Shah
The Economic offences wings (EOW) of the Mumbai police is conducting a preliminary inquiry into the failure of some traders as also Jignesh Shah, co-founder of the Multi-Commodities Exchange (MCX). Rahul Mahajani reports.business Updated: Sep 14, 2013 01:31 IST
The Economic offences wings (EOW) of the Mumbai police is conducting a preliminary inquiry into the failure of some traders as also Jignesh Shah, co-founder of the Multi-Commodities Exchange (MCX) to settle trades at the National Spot Exchange Ltd (NSEL) which has led to payment defaults amounting to Rs5,600 crore involving around 13,000 investors.
The probe follows complaints from small investors. Sources in the EOW said they have already picked up the relevant data from the NSEL computers and the Registrar of Companies.
Shah, who co-founded Financial Technologies India Ltd (FTIL) in 1995 and later set up both the exchanges using his technological expertise and his experience, is now facing regulatory probes and angry protests from victims of the payment defaults.
NSEL has been in crisis following suspension of trade in most commodities on July 31.
NSEL is a national level electronic spot market. It had promised to be the state-of the-art organized and structured delivery based market place providing facilities for risk-free and hassle-free purchase and sale of various commodities across the country.
However, its methods were controversial as it played on some areas were regulation was considered to be lax.
Shah says there is no wrongdoing and all claims will be honoured.
The payments crisis has shocked the investors that forced the government to step in to find a solution to the crisis and getting the investors their dues.
Shah, 45, began his career in 1989 with the Bombay Stock Exchange (BSE) as part of an automation projection that struck gold with technology he co-developed for his employer. He quit the BSE when the then state-owned CMC took over the project and co-founded Financial Technologies.