FMC, the regulator for commodities market, has ruled that Shah and his flagship firm FTIL are not "fit and proper" to run any exchange amid the continuing NSEL payment crisis.
The National Spot Exchange Ltd (NSEL), promoted by FTIL, is embroiled in a Rs 5,500 crore payment turmoil and is under the scanner of multiple agencies.
FTIL was the founder and promoter of Indian Energy Exchange (IEX), the country's premier power bourse, as also that of MCX Stock Exchange (MCX-SX).
Sources said that Securities and Exchange Board of India (Sebi) and Central Electricity Regulatory Commission (CERC) are likely to take a call on Shah and FTIL's association with the two bourses.
While MCX-SX comes under the ambit of Sebi, IEX is regulated by CERC.
Shah, who set up the MCX-SX, resigned from the stock exchange's board as vice-chairman and shareholder director in October. Soon after, former Union Home Secretary Gopal Krishna Pillai as its chairman.
Besides him, the bourse's managing director and CEO Joseph Massey had also put in his papers.
Meanwhile, Shah -- who was instrumental in setting up the country's first power exchange IEX -- continues to remain as its non-executive director.
On Wednesday, the Forward Markets Commission said that Shah and FTIL are not "fit and proper" to run any exchange in the country besides charging him of being the "highest beneficiary" in the NSEL scam.
Shah founded Multi-Commodity Exchange (MCX) as well as NSEL come under the purview of the Commission.
As per its order, FTIL is not a "fit and proper person" to hold anything more than two per cent shareholding in the MCX.
FTIL currently has 26 per cent stake in MCX, country's largest commodity exchange and will need to cut its stake following the FMC order.
Shah is currently the chairman of FTIL. P