CERC asks IEX to explain its association with Jignesh Shah

Jan 14 2014, 20:23 IST
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Jignesh Shah and his flagship firm Financial Technologies (India) Ltd came under the scanner after a payment fiasco at its group entity NSEL. Reuters Jignesh Shah and his flagship firm Financial Technologies (India) Ltd came under the scanner after a payment fiasco at its group entity NSEL. Reuters
SummaryFinancial Technologies is the founder and promoter of IEX, the country's premier power bourse.

Electricity regulator CERC has asked Indian Energy Exchange for information on the action being taken with regard to FTIL and its promoter Jignesh Shah who were found not "fit and proper" to run any bourse by commodities market watchdog FMC.

Jignesh Shah and his flagship firm Financial Technologies (India) Ltd came under the scanner after a payment fiasco at its group entity National Spot Exchange Ltd.

Following the Rs 5,500 crore payment crisis at NSEL, the Forward Markets Commission ruled last month that Shah and FTIL are not "fit and proper" to run any exchange.

Central Electricity Regulatory Commission has now sought information on "action being taken by the board of the company with regard to Jignesh P Shah and shareholding of Financial Technologies Ltd in IEX".

FTIL is the founder and promoter of IEX, the country's premier power bourse.

Besides, the exchange has been directed to "place on record the copies of the audit committee report for the last three financial years for perusal," according to a CERC communication send to IEX earlier this month.

When contacted, a company spokesperson said: "The CERC order is under consideration of board of directors of IEX."

It could not be immediately ascertained as to when the order, dated January 3, was served to the exchange. The bourse was asked to provide the required information within seven days of the receipt of the order.

Citing the bourse's annual report for the 2012-13 fiscal, CERC said the Financial Technologies held 33.49 per cent in IEX while Shah was the non-executive director on the board.

Shah continues to remain in that post, according to IEX website.

Besides finding Shah and FTIL as not "fit and proper" to run any exchange in the country, FMC had also charged him of being the "highest beneficiary" in the NSEL scam.

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