Controversial businessman Jignesh Shah, founder of Financial Technologies India Ltd (FTIL) and the mastermind in the Rs 5,600-crore National Spot Exchange (NSEL) settlement scam, was arrested by the Central Bureau of Investigation (CBI) on Tuesday.
Shah, who is currently the Chairman Emeritus of 63 Moons - and is working with several technology firms for start ups, has been arrested in a case that pertains to the grant of Securities and Exchange Board of India (Sebi) licence to MCX-SX, which first started operations in 2008 with its currency derivatives segment.
The arrest follows series of raids by the Economic Offences Wing (EOW) of the CBI and grilling of Shah at the Mumbai office of the agency, throughout the day.
He would be produced before a special CBI court on Wednesday. Even 63 moons (formerly FTIL) confirmed the CBI raids. "Pursuant to the applicable Regulations of SEBI (Listing Obligations and Disclosure Requirements), Regulations 2015, please be informed that Central Bureau of Investigation, Economic Offences Wing, Mumbai, is conducting search in connection with FIR No RC 0682014E0009 relating to recognition granted by SEBI to MCX-SX (now Metropolitan Stock Exchange of India Ltd)." The CBI too confirmed the arrest without naming him. "The CBI today arrested a promoter of two private companies and conducted searches at nine places in Mumbai, including the residence and office premises of said promoter, then Executive Director, SEBI and others in an on-going investigation of a case."
"This case was registered u/s 120 B of IPC read with section 420 of IPC and section 13(2) read with 13(1)(d) of Prevention of Corruption Act, 1988 against Shah, four then SEBI officials and others on the allegations of connivance of the SEBI officials with MCX-SX in fraudulently allowing renewal of recognition for it to conduct trade in currency derivatives in 2009-2010," according to a CBI statement.