CBI examines Bhave in MCX case

The CBI on Monday quizzed former Securities Exchange Board of India (SEBI) Chairman C B Bhave in connection with granting sanction to Jignesh Shah-founded Financial Technologies (India) and MCX to function as a full-fledged private stock exchange. Mr. Bhave was examined in Bangalore by a team of CBI officers two months after the agency registered a Preliminary Enquiry (PE) against him, another former member K M Abraham and FTIL and MCX, among others. The PE was registered on issues of alleged irregularities in granting sanction to the MCX Stock Exchange (MCX-SX) by SEBI in 2008 and renewing the recognition in 2009 and 2010. The examination of Mr. Bhave was to ascertain how MCX-SX was granted permission despite opposition by SEBI when he was head of the regulatory authority. His examination comes barely three days after Abraham was examined by the CBI last Friday. Efforts to seek a reaction from Mr. Bhave, an IAS officer of 1975 batch from Maharashtra cadre, were not successful. A caller at his residence said that he was in office and refused to share his mobile number. Mr. Bhave became SEBI Chairman in February 2008 and his three-year term ended in February 2011. Abraham’s term as a whole-time member of SEBI also ended in 2011. However, after registering of the PE, Mr. Bhave had said that CBI was working with a “crazy logic” and also indulging in “pick and choose” policy. He had said that CBI will have to “publicly apologise” to him for tarnishing his reputation if they find no substance.