The Forward Markets Commission (FMC) has issued show-cause notices to Jignesh Shah, founder of Financial Technologies India Ltd. (FTIL), and three other officials, following the NSEL payment crisis, asking why they should be considered ‘fit and proper’ to operate group company Multi Commodity Exchange of India (MCX).
According to sources, the FMC issued the notices to four officials, including Mr. Shah, Shreekant Javalgekar, MCX Managing Director and CEO, and Joseph Massey, MCX Stock Exchange Managing Director and CEO.
The officials had been asked to reply within two weeks, the sources said. National Spot Exchange Ltd (NSEL) received the notice on Saturday, and it was being examined by the group’s legal team, they added.
The notices were issued following the Rs.5,600 crore payment crisis at NSEL, which, along with futures commodity bourse MCX, is promoted by FTIL.
NSEL was plunged into a crisis after halting trading in commodities from August 1 on a government directive.