CBI files FIR against Jignesh, ex-Sebi men
Aug 25 2014 , Mumbai
CBI’s fresh move comes after letting off former Sebi chairman CB Bhave and former whole-time member KM Abraham, who had come under the CBI scanner.
Experts said this development is significant because while naming these individuals, CBI has let off CB Bhave and KM Abraham by not including their names in this FIR.
However, it has recommended departmental action against Abraham. As far as Bhave is concerned, his role in granting permission to the private exchange was not of such a serious nature as to warrant registering of an FIR against him, reports quote CBI sources as saying.
The FIR against Jignesh Shah comes as more bad news for the FTIL promoter, who is also facing a chargesheet by the economic offences wing (EOW) of the Mumbai Police in the Rs 5,600 crore payment default matter related to FTIL subsidiary National Spot Exchange (NSEL).
Last week, Jignesh Shah was granted bail by the Bombay high court after EOW arrested him in May in the NSEL case.
Earlier, in March 2014, CBI had grilled Shah in Mumbai in the NSEL matter, and also recorded his statements. It had then begun a preliminary enquiry against Bhave and Abraham for alleged ‘irregularities’ in granting a licence to the MCX-Stock Exchange (MCX-SX).
In March, CBI had registered an FIR naming NSEL, MCX, Jignesh Shah, former director of NSEL Joseph Massey, its former CEO Anjani Sinha, public sector company PEC, certain officials in the rank of CGM and GM of the state-owned entity and four private parties who defaulted after borrowing on the bourse.
CBI’s actions indicate the intensification of a multi-pronged investigation into the NSEL-FTIL-MCX matter. Meanwhile, MCX-SX on Monday said that it had extinguished warrants worth Rs 56.24 crore held by FTIL. “Consequently, the amount of Rs.56.246 crore standing as non-refundable interest-free deposit against such warrants will be transferred to the capital reserve. This will result in addition of the amount to the net worth of the exchange.” Earlier this year, the exchange had shifted MCX & FTIL from 'promoter category' to 'public category,' MCX-SX said.