CBI charges Jignesh Shah of cheating, suppression of facts

MUMBAI: The Central Bureau of Investigation on Wednesday framed charges of cheating and suppression of facts against Jignesh Shah, founder promoter of Financial

MUMBAI: The Central Bureau of Investigation on Wednesday framed charges of cheating and suppression of facts against Jignesh Shah, founder promoter of Financial Technologies (India) Ltd (FTIL) and commodities exchange MCX, after arresting him on Tuesday, bringing the curtains down on a meteoric rise for the software engineer who started his career with the Bombay Stock Exchange.

HT Image

This is the second time that Shah has been arrested in the case related to the National Spot Exchange (NSEL), a subsidiary of Financial Technologies; in July the Enforcement Directorate had booked him under the Prevention of Money Laundering Act for alleged criminal conspiracy connected to irregularities detected at NSEL.

The economic offences wing of Mumbai Police had estimated the quantum of the irregularities at NSEL to be at ₹5,600 crore.

The arrest by CBI was followed by searches at about nine places connected to Shah and to Financial Technologies and also included office premises of former officials of market regulator Sebi. The regulator did not comment on the issue.

CBI’s move was backed by the charges that say that Shah and others had fraudulently allowed renewal of recognition of MCX that enabled trades in currency derivatives.

MCX, which had started equity trading in 2012, contested for long with Sebi for the permission to trade in currency derivatives. This contest gradually took political overtones with Sebi officials approaching then Prime Minister’s Office on allegations that the finance ministry was pressurizing the regulator to ease the charges on Shah.