Jignesh Shah quits MCX
Nov 01 2013 , Mumbai
The resignation of Shah, who is also the founder of MCX and CMD and CEO of Financial Technologies, comes after the Forward Markets Commission (FMC), the commodities futures market regulator, issued a show cause notice on ‘fit and proper’ issue recently.
Shah had refused to resign at MCX’s board meeting on October 22, despite the growing pressure even as its MD Shreekant Javalgekar quit a couple of days ahead of that meeting.
Shah has been at the centre of the Rs 5,500 crore payment crisis at NSEL, after the exchange failed to pay out investors, who were transacting on the exchange. On Wednesday, the economic offences wing (EOW) said it had frozen all personal bank accounts and lockers of Shah, Joseph Massey, former CEO and MD of MCX-Stock Exchange (MCX-SX) and Anjani Sinha, former CEO and MD of NSEL.
In a statement here, Shah said he had filed a “detailed reply” on FMC’s showcause notice on ‘fit and proper’, “addressing all the concerns” raised by the regulator.
On MCX, he said “I have worked tirelessly along with my team for creating institutions such as MCX and putting India on the global map. I don’t want any event or anything to undermine their reputation and want to ensure that the shareholder and investor interests are not harmed by the mud-slinging that has been done towards the entire range of institutions that have been created by the Group.”
On the NSEL crisis he said: “The NSEL crisis has destroyed everything that I have worked hard to build over past two decades. My loss is not just financial, but what has hurt me and my family most is the concerted effort to destroy my credibility and trust for which I have lived by all my life.”
On Thursday, MCX shares closed at Rs 473.45 apiece, up 0.97 per cent (Rs4.55 a share), but much below Rs 1,591-level of last November. Shares of Financial Technologies ended lower at Rs 173.30 apiece, down 0.26 per cent, but lower from Rs 1,194 apiece last November.
“I wish the very best to the management and board of MCX for future. I hope that they will do justice to the growth opportunities ahead of them and I will see the institution grow from a distance for the rest of my life,” Shah said.