MCX promoter under SEBI scanner; Shah denies involvement

Market regulator SEBI is investigating into certain alleged irregularities by Financial Technologies India limited (FTIL), the promoter of the Multi-Commodity Exchange of India (MCX). According to the draft offer document filed by MCX with Sebi, the investigation related to trading in shares of Financial Technologies India Limited (FTIL) in which MCX Managing Director Jignesh Shah owns a substantial stake. FTIL received a notice late last year seeking information on the transactions done by FTIL and La Fin Financial Services and certain other matters. La Fin Financial Services is a company promoted by Shah and his wife and the two are the only shareholders in the company. When contacted, a MCX spokesperson said Shah was not under any investigation in his personal capacity nor had he received any notice from the Securities and Exchange Board of India (SEBI) for insider trading. The company clarified that Jignesh Shah has not traded in the shares of Financial Technologies (India) Limited . SEBI sent a letter seeking information in September 2005 to La-Fin Financial Services Limited (LFS), the promoter of FTIL, regarding shares it sold during the month of December 2003. This was promptly replied to, the spokesperson said. In November 2007, FTIL received another letter seeking further information on the matter. This was also replied to promptly, an official said.