Mumbai: The Central Bureau of Investigation (CBI) on Friday conducted searches at Mumbai headquarters of Financial Technologies of India Ltd (FTIL) and the residence of its former chairman Jignesh Shah in a case of alleged irregularities in launching the initial public offer (IPO) of Multi Commodity Exchange (MCX) in 2012, according to two people aware of the development, including a CBI official.
A CBI spokesperson confirmed the developments, adding the details of the searches are still awaited. An email sent to FTIL, which is now known as 63 Moons Technologies Ltd, was not answered.
“CBI has initiated an inquiry into the clearance given by Forward Markets Commission to MCX to bring its initial public offering in 2012 which was allegedly against certain regulations,” said the second person quoted earlier in the story.
This is the third CBI case against FTIL and Jignesh Shah. CBI has registered a chargesheet against the two in Rs5,574.35 crore National Spot Exchange Ltd (NSEL) scam for allegedly defrauding two public sector commodities trading firms PEC Ltd and MMTC Ltd. CBI is also probing a case of alleged irregularities in according recognition to MCX-SX by capital markets regulator Securities and Exchange Board of India (Sebi) in 2008 and further renewing the recognition in 2009 and 2010.
MCX, promoted by Jignesh Shah, to launch an IPO in 2009-10 but it was postponed because of global financial meltdown. In 2010 and 2011, the erstwhile Forward Markets Commission (FMC) changed some provisions that made it difficult for the commodity exchange to go public.