They allegedly facilitated the private commodity exchange in getting the nationwide multi-commodity exchange status.
Mumbai: The Central Bureau of Investigation (CBI) has registered a case against Jignesh Shah, a former MD of Multi Commodity Exchange of India Ltd (MCX), four former chairpersons of the Forward Market Commission (FMC) and others for allegedly facilitating the private commodity exchange in getting the nationwide multi-commodity exchange status in 2003, said agency officials.
The CBI alleged that the exchange had not fulfilled the criteria for acquiring the status.
Besides Shah, the CBI booked four former chairmen of the FMC (erstwhile government body that is now part of SEBI — the Securities and Exchange Board of India), Bishnu Khatua, Kewal Ram, Anand Kumar Bhat and Rajeev Kumar Agarwal. The then deputy MD of MCX Joseph Massy, the then deputy director (FMC), Vishal Nair, Financial Technologies India Limited (FTIL), then senior research assistants of the FMC Bhimrao Raibhole and Ujwala Thathare were also mentioned in the first information report (FIR), the CBI said.
Refuting the CBI’s allegations, the spokesperson of 63 Moons (erstwhile FTIL) told a news agency that the CBI search was in connection with the matter of permission granted to the MCX in 2003, though the permission was granted 15 years ago when the country did not have a pan-India commodity exchange.
The agency carried out searches at the office of Shah and others at nine locations in Mumbai, Gwalior (Madhya Pradesh) and Shimla (Himachal Pradesh), the agency said.
The agency’s FIR was registered for alleged cheating, criminal conspiracy under the Indian Penal Code and sections related to a public servant’s criminal misconduct under the Prevention of Corruption Act.