MCX-SX case: CBI examines Sebi chief UK Sinha

Expanding its probe into the the grant of permission to Jignesh Shah-founded Financial Technologies (India) group for setting up MCX Stock Exchange, the CBI recently questioned the chairman of Securities and Exchange Board of India (Sebi) UK Sinha. The agency said that Sinha was examined by a CBI team in Mumbai and was asked to explain the reasons for granting licence to MCX-SX for operating as a full-fledged stock exchange. Besides Sinha, the agency also questioned former Sebi chairman M Damodaran. The two were questioned after examination of another former Sebi chief CB Bhave earlier this month, during which the agency was told that public interest was involved in grant of licence to MCX-SX to trade in currency derivatives. The approval for full-fledged stock exchange came during the tenure of Sinha, who took charge of the Sebi in February 2011. He got an extension of two years in February this year. After getting a full-fledged licence, MCX-SX started trading in equity and derivatives. CBI officials said that a final call on whether any criminality was made out from the Preliminary Enquiry (PE) registered more than two months back, will be taken soon. MCX-SX had approached Sebi during Damodaran’s tenure who cleared the file at a time when I-T searches were being conducted on Shah. The former Sebi chief had, however, claimed that the report about I-T searches reached him later. The agency had questioned Bhave, a 1975 batch IAS officer from Maharashtra, during which he claimed that there was no undue pecuniary benefit to Jignesh Shah entities as a result of this decision. Bhave, another former member KM Abraham and Financial Technologies India Limited (FTIL) and MCX-SX have been named in the PE registered by CBI.