The Central Bureau of Investigation (CBI) has arrested Jignesh Shah, promoter of Financial Technologies India Ltd (FTIL) and MCX Stock Exchange, now known as Metropolitan Stock Exchange of India Ltd (MSEI) in a case of alleged cheating.
The CBI conducted searches at nine places in Mumbai, including the residence and offices of Shah. Shah is also accused of suppression of facts in getting SEBI extension to MCX-SX to continue as a private stock exchange.
CBI had filed the FIR in the case under IPC sections related to criminal conspiracy and cheating besides provisions of Prevention of Corruption Act for alleged abuse of official position.
MCX-SX had started functioning as a stock exchange in 2013 after a long legal battle with SEBI. CBI had alleged that Shah, in support with SEBI officials, fraudulently obtained the extension of recognition of the exchange in the year 2009.
CBI has also accused SEBI officials for not issuing notice to the stock exchange for cancellation of its recognition in the currency derivatives.