Sebi adjourns hearing on FTIL eligibility issue to 12 Feb

Mumbai: The Securities and Exchange Board (Sebi) today adjourned to February 12 hearing on the

eligibility of Financial Technologies (India) Ltd, whose group entity NSEL is at the centre of a scam, to run stock and commodity exchanges.

Financial Technologies (India) Ltd’s (FTIL) lawyers appeared before the market regulator, which had last month issued a showcause notice questioning FTIL’s status to hold stake in MCX-SX, following a report by FMC saying the company and its promoter Jignesh Shah are not eligible to run any exchange following the NSEL scam.

The watchdog agreed to push FTIL’s hearing to February 12 as another appeal, filed by the company against the commodities regulator Forward Markets Commission (FMC) order, is pending before the Bombay High Court, sources said.

[caption id=“attachment_1325075” align=“alignleft” width=“380”] FTIL chief Jignesh Shah. Reuters[/caption]

Sebi officials could not be reached for comments.

The market regulator had issued notices to FTIL and others soon after FMC on December 18 had said the Group, its promoter Shah as well as senior executive Joseph Massey were not “fitand proper” to run any exchange.

The indictment came following a probe the FMC had conducted into the Rs 5,600-crore scam at the Group-promoted spot exchange NSEL, shut since July 30 when trading in unlicensed forward instruments came to light.

The FTIL Group will have to reduce its shareholding in stock exchange MCX-SX substantially if Sebi, too, declares the Group and the promoter not ‘fit and proper’ to run bourses.

The Sebi notice asked FTIL to explain why it should not be directed to divest its equity holdings and warrants in MCX-SX.

In its reply, the company said the regulator should wait till the matter is disposed by the High Court.

PTI