Jignesh Shah owned National Spot Exchange (NSEL) was promoted by Financial Technologies India Ltd, owned by Jignesh Shah.
CBI today arrested promoter of FTIL and commodity promoter of MCX, Jignesh Shah in a case of alleged cheating and suppression of facts in getting Sebi extension to MCX-SX to continue as a private stock exchange in violation of norms, reports PTI.
5 Things To Know About The NSEL Scam
- MCX Stock Exchange (MCX-SX) had started functioning as a stock exchange in 2013 after a legal battle with Sebi
- As per WIKI, the NSEL scam was a Ponzi scheme and is estimated to be a Rs 5600 crore fraud that came out to light after the National Spot Exchange failed to pay its investors in commodity pair contract.
- The agency had alleged that the promoters of MCX-SX had entered into a buy back arrangement with a nationalised bank in violation of Securities Contract Regulation Act, 1956 and Securities Contract Regulation, 2006, reports PTI.
- The agency further alleged that the Sebi officials deliberately did not issue notice to the stock exchange for cancellation of its recognition in the currency derivatives, when Sebi had already rejected a request of the same stock exchange for trading in other segments, it further added.
- The CBI search is going on in respect of recognition granted by Sebi to Metropolitan Stock Exchange of India Limited for starting its stock exchange in trading in currency and other segments, MCX said in BSE statement.