CBI has conducted raids at the Mumbai headquarters of Financial Technologies of India Ltd (FTIL) and the offices and residences of its former chairman, Jignesh Shah, in connection with a case of alleged irregularities in launching the initial public offer (IPO) of Multi Commodity Exchange (MCX) in 2012.
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“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,” Livemint quoted an unnamed CBI source as saying.
Jignesh Shah and FTIL are also accused in the NSEL scam that surfaced at the National Spot Exchange Ltd in 2013. In its charge-sheet, the CBI accused Jignesh Shah of cheating and criminal conspiracy and violating the prevention of corruption act in connection with the Rs. 5600 crore payments fraud.
FTIL’s shares in the stock market suffered a significant dent on Friday as reports of the CBI raids emerged. The residences of top executives Shrikant Javelgekar and Joseph Massey were also raided.