FTIL has a 26% stake in MCX, India's largest commodity futures exchange.
In a strongly worded order, commodity markets regulator Forward Markets Commission (FMC) declared FT, Shah and two of his key lieutenants - Joseph Massey and Shreekant Javalgekar - not 'fit and proper' to hold board or managerial positions in a recognised commodity bourse. Like FTIL, the three directors would be barred from holding more than 2% individually or through other entities in any recognised commodity exchange.
Shah 'Highest Beneficiary' of NSEL Scam: FMC
"...it can be logically concluded that behind the corporate veil, the management and governance of NSEL was practically carried out by Shri Jignesh Shah through the vehicle of FTIL....," said FMC, which described Shah as the "head and brain" of the entire group and the "highest beneficiary of the fraud". It further added that the circuitous manner of trading in NSEL "indicated mala fide intention on part of the promoter of FTIL to use the trading platform of its subsidiary company for illicit gains away from the eyes of the regulator".
Questioning the induction of Mukesh Shah, the maternal uncle of Jignesh Shah, as statutory auditor of NSEL, the order said, "It appears that Shri Jignesh Shah has got himself excluded from the list of key management personnel ostensibly to distance himself from NSEL when continuous defaults by members had thrown the company completely out of gear."
Ever since the Rs 5,500-crore scam broke out in end-July, Shah and other senior group officials have alleged they were unaware of the fraud perpetrated by NSEL's former CEO Anjani Sinha, who is now cooling his heels in a Mumbai jail. FMC's final order on Wednesday has challenged this. Soon after issuing its order, FMC directed the MCX chairman to call a board meeting to consider follow-up action, which could include FTIL divesting a predominant part of its stake in MCX.
Meanwhile, high drama was witnessed when Shah, who was asked to present himself before the Bombay High Court on Wednesday to clarify issues related to attachment of his assets by Mumbai Police, walked out of the court on completion of the hearing. Shah was greeted by shrill cries from certain NSEL investors alleging that he had defrauded them. The ruckus outside the court prompted a senior counsel to make an oral complaint against the sloganeers to Justice SJ Kathawala, who is hearing a recovery suit filed against NSEL by state-owned MMTC.
Copyright © 2013 Times Internet Limited. All rights reserved.
via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNG7dH1ZLX6Ijt3AbnWRIaHSsqxb3A&url=http://economictimes.indiatimes.com/markets/stocks/market-news/team-jignesh-shah-ft-not-fit-and-proper-to-run-bourse-fmc/articleshow/27609203.cms
Put the internet to work for you.
No comments:
Post a Comment